Fair Isaac Corporation FICO is set to report its first-quarter fiscal 2025 results on Feb. 4.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The Zacks Consensus Estimate for first-quarter fiscal 2025 revenues is pegged at $454.73 million, suggesting an increase of 19.02% from the year-ago quarter’s reported figure.

The consensus mark for earnings is pegged at $6.21 per share, up 0.8% over the past 30 days, indicating 29.11% 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 surprise being 0.67%.

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

Factors to Note

FICO’s fiscal first-quarter 2025 performance is expected to have benefited from sustained growth in Scores revenues, driven by continuous innovation in its Scores business. The newly launched FICO Score Mortgage Simulator is expected to have accelerated the growth trajectory.

FICO Score remains the most trusted and cost-effective tool for assessing consumer credit risk and mortgage finance. The widespread adoption of FICO Score 10T for non-GSE (non-government-sponsored entity) mortgages is likely to have benefited from its continued expansion. This trend is expected to have continued in the to-be-reported quarter.

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.

FICO has made significant strides in innovation, especially with its FICO platform, and the FICO World event is likely to have accelerated pipeline growth for SaaS bookings, bolstering first-quarter momentum.

However, Annual Contract Value (ACV) performance in the fiscal first quarter of 2025 is expected to have hurt overall growth due to market challenges and shifting demand dynamics. A decline in bookings may have impacted revenue stability, reflecting cautious customer spending. In the last reported quarter, ACV bookings were $22 million, a 10% decline year over year.

What Our Model Says

Per 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, which is exactly the case here.

Fair Isaac currently has an Earnings ESP of +1.93% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

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

Impinj PI has an Earnings ESP of +1.41% and currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Impinj shares have risen 35.6% in the trailing 12 months. PI is set to report its fourth-quarter 2024 results on Feb. 5.

Lumentum LITE currently has an Earnings ESP of +17.01% and a Zacks Rank #2.

Lumentum shares have gained 41.8% in the trailing 12 months. LITE is set to report its second-quarter fiscal 2025 results on Feb. 6.

Qualcomm QCOM has an Earnings ESP of +3.34% and a Zacks Rank #2 at present.

Qualcomm shares have returned 16% in the trailing 12 months. QCOM is set to report its first-quarter fiscal 2025 results on Feb. 05.

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QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report

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