Shares of Fair Isaac (FICO 3.69%), a leading analytics software company, doubled in 2019, according to data from S&P Global Market Intelligence. That performance made it one of the year's top-performing large-cap tech stocks. For context, the S&P 500 index returned 31.5% in 2019.
Fair Isaac stock isn't slowing down in 2020: It's up 7.9% through Jan. 10, compared with the S&P 500's 1.1% return.
We can attribute Fair Isaac's powerful 2019 stock rise to its strong financial performance. In the company's most recently reported quarter, the fourth quarter of fiscal 2019, its revenue jumped 19% year over year to $305.3 million. Applications revenue increased 8% to $149.9 million, scores revenue was up 30% to $115.9 million, and decision-management software revenue surged 41% to $39.5 million.
Under generally accepted accounting principles (GAAP), net income soared 67% to $54.6 million, which translated to a 68% rise in earnings per share (EPS) to $1.80. On an adjusted basis, net income surged 48% to $60.8 million, which translated to a 50% increase in EPS to $2.01. That result crushed Wall Street's $1.68 consensus estimate.
"Our strong fourth quarter capped off another great year," said CEO Will Lansing in the earnings release. "We delivered double-digit revenue and earnings growth while expanding our margins."
Fair Isaac stock isn't just a one-year big outperformer, it's been a long-term winner, as this 10-year chart shows:
Investors should be getting material news soon. While Fair Isaac hasn't yet scheduled a date for the release of its first-quarter results for fiscal 2020, it should be late this month or early in February.
Wall Street is expecting adjusted EPS of $1.86 on revenue of $288.8 million, representing growth of 28.3% and 10.1%, respectively, year over year.