Fair Isaac to Report Q2 Earnings: What's in Store for the Stock?

Fair Isaac Corporation FICO is set to report its second-quarter fiscal 2025 results on April 29.

The Zacks Consensus Estimate for second-quarter fiscal 2025 revenues is pegged at $496.22 million, suggesting an increase of 14.39% from the year-ago quarter’s reported figure.

The consensus mark for earnings is pegged at $7.39 per share, up 0.7% over the past 30 days, indicating 20.36% year-over-year growth.

The company’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters while beating the same on one occasion, the average negative surprise being 0.92%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Fair Isaac Corporation Price and EPS Surprise

Fair Isaac Corporation price-eps-surprise | Fair Isaac Corporation Quote

Let’s see how things have shaped up prior to this announcement.

Factors to Note

FICO’s fiscal second-quarter 2025 performance is expected to have benefited from sustained growth in Scores revenues, supported by continuous innovation in its scores business.

The company has expanded its scoring models to incorporate Buy Now, Pay Later loan data, enhancing the predictive accuracy of FICO scores and strengthening their utility for lenders. These enhancements are expected to have contributed to increased adoption across financial institutions in the to-be-reported quarter.

FICO Score remains the most trusted and cost-effective tool for assessing consumer credit risk and mortgage finance. The ongoing expansion of FICO Score 10T for non-GSE (non-government-sponsored entity) mortgages is likely to have driven revenue growth, aided by continued customer adoption and expansion among existing clients.

FICO's successful land-and-expand strategy, growing customer adoption and increased recurring revenues have strengthened its market position. These factors are expected to have benefited FICO, driving sustained growth in the to-be-reported quarter.

In the first quarter of fiscal 2025, FICO reported strong adoption momentum for FICO Score 10T, particularly in mortgage origination. This trend is expected to have extended into the fiscal second quarter, further reinforcing FICO’s leadership in the mortgage industry. Notably, loans utilizing FICO Score 10T began trading on the MCT Marketplace, the largest mortgage asset exchange in the U.S. secondary market, signaling broader market acceptance.

What Our Model Says for FICO

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the exact case here.

FICO currently has an Earnings ESP of -1.71% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

StoneCo STNE has an Earnings ESP of +13.79% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

StoneCo shares have appreciated 68.5% year to date. STNE is set to report its first-quarter 2025 results on May 8.

Baidu BIDU currently has an Earnings ESP of +8.67% and a Zacks Rank #2. 

Baidu shares are up 6.2% year to date. BIDU is slated to report its first-quarter 2025 results on May 21.

Qorvo QRVO presently has an Earnings ESP of +3.42% and a Zacks Rank #2.

Qorvo shares have plunged 9.1% year to date. QRVO is scheduled to report its fourth-quarter fiscal 2025 results on April 29.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research