Fair Isaac’s Earnings

I wanted to say more about Fair Isaac’s (FIC) earnings report. I was very impressed. The company holds a near-monopoly position in the industry. Last quarter, gross margins expanded from 64% to nearly 67%. Operating margins jumped to 26% from 21%.
The company also raised guidance for next year to $2.15 a share. Here’s a report from Reuters, but catch what’s at the bottom.

–The company said shares used in computing earnings per
share for the latest third quarter were about 67.2 million,
compared with about 80.4 million in the year-ago period.
–The provider of analytics and decision technology said it
expects first-quarter earnings to be about 50 cents per share,
excluding the impact of stock-options expensing. It said
revenue for the quarter would be $207.0 million.
–Six analysts on average expect the company to earn 48
cents per share, excluding special items, and four analysts
expect revenue of $212.4 million for the first quarter,
according to Reuters Estimates.
–Fair Isaac said for fiscal 2006 it expects the earnings
to be about $2.15 per share, excluding the impact of
stock-options expensing. It said revenue for the year would be
$860 million to $900 million.
–Nine analysts on average expect the company to earn $2.06
per share, before special items, and six analysts expect
revenue of $875.5 million for 2006.
(Reporting by Debiprasad Nayak in Bangalore)

Posted by on November 3rd, 2005 at 1:05 pm


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