The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Fair Isaac beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Margins grew across the board.
Fair Isaac tallied revenue of $170.3 million. The three analysts polled by S&P Capital IQ looked for revenue of $161.2 million. Sales were 9.2% higher than the prior-year quarter's $155.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.81. The four earnings estimates compiled by S&P Capital IQ anticipated $0.62 per share. GAAP EPS of $0.81 for Q1 were 103% higher than the prior-year quarter's $0.40 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 73.0%, 240 basis points better than the prior-year quarter. Operating margin was 30.6%, 1,100 basis points better than the prior-year quarter. Net margin was 17.6%, 730 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $157.1 million. On the bottom line, the average EPS estimate is $0.55.
Next year's average estimate for revenue is $645.2 million. The average EPS estimate is $2.63.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 80 members out of 105 rating the stock outperform, and 25 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Fair Isaac a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fair Isaac is hold, with an average price target of $34.80.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.