Event in Progress:
Discover the latest content that has just been published on Research Tree
Experian reported H1 FY24 results largely in line with the consensus and our estimates. Revenue increased by 5% yoy with growth across all regions and businesses. The EBIT margin improved by 20bps underpinned by productivity initiatives. The management reiterated the outlook for FY23/24, providing reassurance to the market (share price up >6% at the time of writing). We do not expect to make significant changes to our estimates and retain our positive recommendation.
Companies: Experian PLC
AlphaValue
Experian released its Q1 FY23/24 trading performance in line with street estimates. Organic and total revenue both grew by 5% yoy, driven by growth across all geographies and business segments. Given the resilience of the business model in the current tighter lending environment, the management reiterated its full year guidance. Overall, no big surprises. No wonder the share price reaction remained muted (+1.1% at the time of writing). We retain our positive view on the stock.
Experian reported FY22/23 results in line with the consensus on profitability. The group recorded positive growth across all geographies despite facing a tough macroeconomic environment. For FY23/24, the management guides for organic growth of 4-6% which is in line with street estimates of 5.8%. No wonder the share price reaction was muted (-0.7% at the time of writing). We do not expect to make major changes to our estimates and retain our positive view on the stock.
Experian reported a Q3 FY23 trading update in line with our expectations. Organic growth moderated to 6% yoy (vs 8% in both the Q1 and Q2) due to a tough comparison base. The consumer services segment continued to lead, while core bureau (i.e. ex-mortgage) growth also remained resilient. The management reiterated its FY23 guidance. Overall, no big surprises and hence the share price reaction remained muted (+0.2% at the close). We maintain our cautiously optimistic view on the stock.
Experian reported H1 FY22/23 results slightly below street expectations. While organic growth was in line with the guidance, reported revenue and profitability were slightly short of the consensus estimates. The management reiterated the full year guidance. We will reduce our estimates slightly to account for the cloudy outlook but maintain our cautiously positive stance on the stock.
Experian’s Q1 FY22/23 trading report was in line with expectations and the management’s guidance. Organic growth of 8% yoy was supported by positive performances across regions and segments, despite mortgage headwinds. While the FY outlook was kept unchanged, given the current uncertain macroeconomic environment, this was still a positive. No wonder the share price has jumped c.3% (at the time of writing). We will tweak our estimates and are likely to maintain our positive view on the stock.
While Experian reported a decent close to FY21/22, with revenues and benchmark EBIT in line with the consensus, the FY22/23 guidance of 7-9% organic growth left investors wanting more. Additionally, the group guided for a mortgage headwind of c.1.5%, which is lower vs peers but they are more exposed to the vertical. However, the strong cash generation and 10% increase in dividend were encouraging. We will revise our estimates slightly upwards and will likely maintain our positive stance on the s
Experian reported its Q3 revenue update which was largely in line with our expectations and management’s guidance. The organic growth of 11% yoy, which sits at the upper end of management’s guidance of 9-11%, was led by strong growth in the B2C segment. Following this update, the company has tightened the range of previously-raised FY21/22 guidance towards the upper limit. However, we will tweak our estimates and target price slightly downwards to factor in the increased risk of multiple rate hi
Experian reported mixed results for H1 FY21/22. While the revenue and benchmark EBIT were largely in line with street expectations, the cash from operations missed market consensus by 17%. On the positive side, management has once again upgraded the revenue guidance for FY21/22. However, given that the stock is already trading at a considerable premium to its long-term average, we maintain our cautious stance on the stock’s valuation.
Experian’s Q1 FY21/22 trading update came in ahead of market expectations. The growth momentum spanned across the regions with healthy demand witnessed across the B2B and B2C offerings — aided by the faster-than-expected economic recovery and weak comparables. Management has raised the FY21/22 revenue guidance on the back of the Q1 performance. We will revise our financial estimates and target price upwards.
Experian’s FY20/21 results were ahead of headline figures. Revenue grew c.4% (in organic terms), led by the robust mortgage refinancing activity in the US and demand for consumer services in the US and Brazil. Adjusted EBIT was largely flat and the dividend was kept unchanged. Nevertheless, share repurchases were resumed. For FY21/22, management guides for 7-9% organic revenue growth and “strong EBIT margin accretion”. Overall, our estimates should reset higher, but the upside is likely to be li
Experian delivered a strong show in Q3 FY20/21 (7% organic revenue growth), ahead of management’s guidance of 3-5% yoy. The US mortgage activity and consumer services in North and Latin America continued to drive the top line. However, the top-line momentum is expected to ease in Q4, given the tough comparable base. Management has guided the benchmark EBIT to be similar to the previous year’s.
Experian performed strongly in Q2 FY20/21 (+5% yoy organic revenue; at top-end of management’s guidance), on the back of the sustained robust momentum in the US mortgage activity and consumer services (in North and Latin America). Group overheads were also well managed, leading to just an 80bp dip in the H1 FY20/21 underlying EBIT margin. As the H2 FY20/21 top-line performance is likely to be relatively better and cost avoidance measures are expected to prevail, we will revise our estimates upwa
Experian’s better-than-expected Q1 FY20/21 performance (-2% yoy on an organic basis) shows the resilience of the business model (with various countercyclical products) and the sustained demand in its key geographies (the US and Brazil). In Q2 FY20/21, management expects to deliver broadly similar results (flat to -5% yoy), but with an improved contribution from the laggard regions (the UK and EMEA / Asia Pacific). At the same time, it is likely to remain tight on cost management.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Experian PLC. We currently have 0 research reports from 6 professional analysts.
Share: