Fair Isaac and Biomet

After the bell yesterday, Fair Isaac (FIC) reported earnings of 60 cents a share. That was three cents higher than the Street was expecting. Charges related to stock-based compensation and one-time expenses pushed FIC’s net income down to 35 cents a share.

For the full fiscal year, net income fell to $103.5 million, or $1.59 per share, from $134.5 million, or $1.86 per share. Revenue rose to $825.4 million from $798.7 million.
Looking ahead, Fair Isaac said it expects first fiscal-quarter earnings per share of about 48 cents on revenue of about $210 million. The outlook includes stock-based compensation charges.
Analysts forecast quarterly profit of 59 cents per share on sales of $211.9 million.
For the full fiscal year, Fair Isaac said it expects earnings per share of about $2.10, including stock-based compensation expenses, on sales of about $870 million.
Wall Street expects full-year earnings of $2.44 per share on sales of $873.1 million.
Fair Isaac also said its board authorized a stock buyback program of up to $500 million.

The company also announced that its CEO, Thomas G. Grudnowski, has resigned.
The other big story is that Smith & Nephew has said that it’s in preliminary talks with Biomet (BMET) about a possible merger. Both companies have very similar market values. Interestingly, what may have lead Biomet down this path was then Dane Miller, the CEO, suddenly resigned earlier this year.

Posted by on November 2nd, 2006 at 9:18 am


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