Experian Rallies as Sales Jump 5%

LONDON -- The shares of Experian (LSE: EXPN  ) have edged 1.25% higher to 1,051 pence as of 8 a.m. EST after the credit information specialist claimed its third-quarter sales had gained 5%.

The FTSE 100 member, which is best known for its CreditExpert consumer credit reports, said its U.K. sales had improved 10% during October, November, and December.

Experian also reported third-quarter turnover within North America improving 7%, with Latin American revenue slipping 1% and sales in Europe, Africa, and Asia advancing 1%. In addition, the group confirmed that its year-end net debt position is expected to be approaching twice the level of EBITDA.

Commenting on the performance, Experian CEO Don Robert said:

We are pleased with the progress made in the third quarter, with total and organic revenue growth of 7%, at constant exchange rates. We delivered widespread growth demonstrating the breadth of our portfolio and continued successful execution of our growth strategy, helping us to withstand ongoing pressures in the global economy.

Looking ahead, for the full year we expect organic growth to be to high single-digit, with organic growth in the second half similar to our third quarter results. We also reiterate our full-year expectations of modest margin improvement (at constant currency) and to convert at least 90% of EBIT into operating cash.

Prior to today, City experts who followed Experian were expecting current-year earnings to advance from $0.79 to $0.86 per share and the dividend to increase from $0.32 to $0.35 per share. The projections equate to a P/E of 19 and a yield of 2%.

The present rating does not look a bargain, although the business has proved to be resilient during the banking crash and subsequent recession. Between 2007 and 2012, for instance, profits have jumped 55%, while the dividend has climbed 88%. The price has rallied from as low as 274 pence during that time, too, thereby making the share almost a four-bagger for investors smart enough to spot the handsome buying opportunity.

If you are keen to earn such superb returns from ordinary shares, this free Fool report explains how buying into dull yet reliable companies such as Experian is a vital step on the path to serious investment success. You never know -- maybe one day your portfolio could be transformed by the enormous gain currently being enjoyed by canny Experian shareholders. Just click here to download this exclusive wealth-building report today.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2198527, ~/Articles/ArticleHandler.aspx, 9/26/2016 4:46:53 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 12:11 PM
EXPN $1559.56 Down -9.44 -0.60%
Experian CAPS Rating: No stars