Fair Isaac (FICO) Q1 Earnings and Revenues Miss Estimates

Core Insights - Fair Isaac (FICO) reported quarterly earnings of $5.79 per share, missing the Zacks Consensus Estimate of $6.21 per share, but showing an increase from $4.81 per share a year ago, resulting in an earnings surprise of -6.76% [1] - The company posted revenues of $439.97 million for the quarter ended December 2024, which was 3.25% below the Zacks Consensus Estimate and an increase from $382.06 million year-over-year [2] - Fair Isaac shares have declined approximately 8.2% since the beginning of the year, contrasting with the S&P 500's gain of 1.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $7.61, with expected revenues of $494.43 million, and for the current fiscal year, the consensus EPS estimate is $29.76 on revenues of $2.01 billion [7] - The estimate revisions trend for Fair Isaac is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Computers - IT Services industry, to which Fair Isaac belongs, is currently ranked in the top 18% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]