Market Overview

A Preview Of Fair Isaac's Earnings


Fair Isaac (NYSE: FICO) unveils its next round of earnings this Tuesday, November 10. Get prepared with Benzinga's ultimate preview for Fair Isaac's Q4 earnings.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering Fair Isaac modeled for quarterly EPS of $2.32 on revenue of $316.40 million. Fair Isaac reported a profit of $2.01 per share when it published results during the same quarter last year. Sales in that period totaled $305.34 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Tuesday, earnings would be up 15.42%. Sales would be up 3.62% from the same quarter last year. Here is how the Fair Isaac's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate 2.16 1.71 1.85 1.68
EPS Actual 2.58 2.14 1.80 2.01
Revenue Estimate 301.30 M 296.73 M 287.81 M 287.65 M
Revenue Actual 313.73 M 307.97 M 298.50 M 305.34 M

Stock Performance

Shares of Fair Isaac were trading at $443.86 as of November 06. Over the last 52-week period, shares are up 37.59%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Fair Isaac is scheduled to hold the call at 17:00:00 ET and can be accessed here.


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Posted-In: Earnings