Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on EXPERIAN PLC. We currently have 8 research reports from 3 professional analysts.
|16Mar17 09:10||RNS||Block listing Interim Review|
|10Mar17 15:15||RNS||Director/PDMR Shareholding|
|28Feb17 17:33||RNS||Transaction in Own Shares|
|28Feb17 12:59||RNS||Irrevocable and non-discretionary arrangement|
|28Feb17 10:18||RNS||Total Voting Rights|
|27Feb17 08:30||RNS||Director Declaration|
|03Feb17 17:04||RNS||Transaction in Own Shares|
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Research reports on
Fundamentals remain strong; limited upside in the near term
23 Dec 16
Experian reported H1 FY17 results in line with our estimates. Lfl sales increased by 5% (Q2 FY17: +5%, Q1 FY17: +5%, FY16: +5%; our estimate: +5.2%), largely driven by credit services (+7% yoy; new client wins in US hospitals) and the decision analytics business (+8% yoy; higher demand of fraud and identity management software). North America’s organic revenue was up 5% (vs Q1 FY17: +5%, FY16: +3%; our estimate: +5.8%), once again driven by strong credit services demand from the health vertical. The decision analytics business improved sequentially (Q2 FY17: +7%, Q1 FY17: -1%, Q4 FY16: -8.6%), on the back of new business wins in the financial services and public sector. Despite ongoing macro-economic headwinds, Latin America clocked 5% lfl revenue growth (vs Q1 FY17: +8%, FY16: +7%; our estimate: +6.8%). The demand for counter-cyclical products (particularly delinquency notifications) once again led to resilient growth in credit services (+5%; contributes c.91% of the regional revenue). In the UK, organic revenue growth came in at +1% (vs Q1 FY17: +1%, FY16: +5%; our estimate: +1.5%), largely due to depressed growth in both credit (Q2 FY17: 0%, Q1 FY17: +6%) and consumer services business (Q2 FY17: -9%, Q1 FY17: -1%). EMEA/Asia Pacific delivered another strong performance with lfl revenue growth of 8% (vs Q1 FY17: +9%, FY16: +7%; our estimate: +8.9%), driven by significant new client wins for credit-decisioning software and fraud prevention products. Strong FX headwinds (-2% impact on the top-line; due to weak GBP and BRL vs USD) resulted in the total group’s revenue growth of 3% (vs Q1 FY17: +1%, FY 16: -4%, our estimate: +2.9%). Even with better operating leverage in North America, the group’s EBIT margin came in at 25.7%, -10bp yoy due to higher sales mix of counter-cyclical products (lower margin vs other core products) and investment in growth initiatives across the businesses. The company repurchased shares worth US$79m during H1 FY17 (has plans for further US$321m share buy-back in the H2 FY17) and announced an interim dividend of 13c per share (+4% yoy; payable in January 2017). For FY17, management has guided mid-single digit organic revenue growth and currency headwinds of 2% and 1% on top-line and EBIT, respectively.
Robust organic growth despite sluggish consumer business
28 Jul 16
Experian reported Q1 FY17 results (three months ending 30 June 2016) broadly in line with our estimates. The lfl sales increased by 5% (vs Q4 16: +6%, Q3 16: +6%; our estimate: +4.8%), largely driven by robust growth in credit services (+8% yoy) and the decision analytics business (+6% yoy). In North America (Q1 17: +5% vs Q4 16: +6%, Q3 16: +6%; our estimates: +4.7%), robust demand from automotive and healthcare clients underpinned the growth in credit services business (Q1 17: +11% vs Q4 16: +12%; Q3 16: +11%, our estimate: +8%). The consumer services business clocked organic growth of 1% (vs Q4 16: +1%; Q3 16: +3%, our estimate: +3%) as the company monetised free traffic (accumulated 4.5 million members since the launch of the free site a year ago) through the cross-selling of membership products and lead generation. Despite ongoing macro-economic headwinds, the LatAm business delivered another strong performance (Q1 17: 8% vs Q4 16: 7.8%, Q3 16: +7%; our estimate: +4.9%) on the back of growth in delinquency notification products and deeper client penetration. Additionally, the company launched the consumer services business in Brazil in July 2016. Organic growth slumped to 1% in the UK (vs Q4 16: +6.5%, Q3 16: +4%; our estimate: +3.9%), pulled down by the sequential slowdown in the consumer services business (-1% yoy; undergoing business transition) and a strong comparative in the decision analytics business (Q1 17: -2% vs Q1 16: +15%). In EMEA/ Asia Pacific, new business wins in decision analytics (+27% yoy) and good demand for cross-channel marketing and data quality services in the marketing business (+11% yoy) resulted in revenue growth of 9% on a lfl basis (Q4 16: +10%, Q3 16: +7%; our estimate: +6.7%). Strong FX headwinds (weak GBP and Brazilian real vs the USD) led the total revenue up 1% (FY 16: -4%, Q3 16: -3%, H1 16: -6%, our estimate: 2.3%). Furthermore, Experian announced the acquisition of CSIdentity Corp., a consumer identity management and fraud detection services provider in the US for $360m (annualised revenue of $103m and $21m EBIT in the year ending March 2016). The acquired entity will be aligned to Experian’s ‘Consumer Services’ business. The company plans to spend $400m on a share repurchase programme in FY17 (vs $592m in FY16). Lastly, management reiterated FY17 guidance of mid-single-digit organic revenue growth and stable margins at constant rates (c. 1% headwind to EBIT, if current exchange rates prevail).
15 Jul 16
"The devastating incident that took place in Nice late yesterday, sadly bearing all the hallmarks of terrorism, will likely keep European markets in the red today. The FTSE-100 is seen opening down around 35 points. London equity investors will also reflect further on the Bank of England surprisingly keeping its benchmark lending rate unchanged at 0.5%, when investors had been expecting to policy loosening by 25bp. With the Governor, Mark Carney, continuing to warn of postBrexit UK entering a phase of slower growth, however, the MPC is now expected simply to gathered more evidence before taking the inevitable step in August. US equity indices were stronger across the board yesterday, as financials took confidence from J.P. Morgan Chase's strong half-year results while the Fed's James Bullard suggested there was now no rush to push rates higher, pointing at a preferred 'wait-and-see' approach in his various press comments. Asian shares also continued to move positively with the Nikkei again leading the way, taking its weekly gain to almost 10%, the largest such rise since December 2009, driven once again by Nintendo but also by messaging-app operator, Line, which surged sharply upward on its Tokyo debut. The Shanghai Composite also celebrated release of economic data showing better than expected Q2'16 growth in response to massive stimulus provided since the start of the year, although it had given all its early gains back by the close. Macro data due for release today includes UK Construction Output figures and Trade and Inflation data from the EU. The US is scheduled to provide a plethora of important statistics, including Retail Sales, Industrial Production and Inflation data; the Fed's Kashkari is also expected to be the latest to muse on US rate and growth expectations. No major UK corporates are due to release trading updates or results today, although investors will be listening intently for any further statements from BP regarding costs for the 2010 Gulf of Mexico oil spill disaster which, post-yesterday's market close, it indicated will rise a further US$5.2bn, taking the total cost to almost US$62bn, in order to bring the event to a final close." - Barry Gibb, Research Analyst
The Cybersecurity Rebellion: “No, I’m Spartacus!”
07 Jun 16
Steve “Woz” Wozniak, infamous co-founder of Apple, was the latest culprit to send shivers across the tech world by claiming Cybersecurity is the greatest threat the world has faced since the atom bomb. Mr Wozniak was alluding to the heightened sense of fear that recent high profile breaches have caused Cybersecurity to be put at the forefront of political, corporate and now it would appear, investor agendas. As the topic gains increasing awareness, it gives rise to a number of companies claiming to be a “thought leader” in the Cybersecurity space, holding the best IP and the best routes to market. With many companies singing from the same loss making hymn sheet it is making it ever difficult to spot the true “Spartacus” from the crowd.
12 May 16
"Equities in London are expected to fall on the open, with the FTSE-100 seen down around 25-points. Sentiment is being dragged from both the US and Asian overnight markets, where poor corporate earnings undermined confidence. Disappointing results from Macy's, America's bellwether retail stock, suggested that US consumer confidence is perhaps less resilient than hoped, the net result being to knock the major domestic indices by 1% or more. The mood spread to Asia, where Japanese company results similarly delivered below expectations, also forcing the principal markets into the red by the close. European investors meanwhile will have a lot of data to consider this morning with releases including the Bank of England MPC meeting minutes and rate decision plus Eurozone industrial production figures, while David Cameron hosts an anti-corruption summit. Later this afternoon, expect US weekly jobless claims and speeches by Fed's Rosengren and George. London's trading updates include ITV andMondi, along with results from Aldermore, Galliford Try, SuperGroup and TalkTalk Telecom."
Stronger Fx headwinds continue to eat strong organic growth
21 Jan 16
Experian posted better-than-expected results in its Q3 FY16 trading update, generating an organic revenue growth of 6% (vs. 4% in H1 FY16), but currency headwinds totally wiped out this growth as reported sales declined by 3%. All the sales growth numbers are organic unless specified otherwise. Both Credit Services and Decision Analytics clocked 8% growth, while Marketing Services and Consumer Services grew at a meagre 2%. In North America (+6% vs +1% in H1), robust business in healthcare and automotive verticals, and consumer credit activity underpinned the growth in Credit Services (+11% vs +8% in H1), while a one-off on-boarding of a large client led to 3% (vs. -7% in H1) growth in the Consumer Services segment. Decision Analytics, however, declined by 2% (vs +2% in H1). Despite macro-economic headwinds in Latin America (+7% vs +6% in H1), all segments experienced strong upwards momentum. Credit Services (+7% vs. 7% in H1) was driven by an increased contribution from delinquency notifications linked to non-performing loans in Brazil. As the new software implementations across the region fuelled 5% growth in Decision Analytics (vs 9% in H1), an increase in cross-channel marketing led to 4% growth in Marketing Services (vs -19% in H1). The UK grew at a slower pace (+4% vs 5% in H1), pulled down by Decision Analytics (+8% vs +12% in H1) and Consumer Services (+2% vs 5% in H1). It is increasingly facing competition from Equifax (ClearScore) and Callcredit (Noddle). EMEA/Asia Pacific (c.10% of total revenue) was up by 7% (vs +6% in H1), driven by fraud and identity services in Decision Analytics (+23% vs +19% in H1), and new client wins and enhanced cross-channel marketing in Marketing Services (+10 vs +8% in H1 FY16). Management reaffirmed its full year guidance of mid-single-digit organic revenue growth and an 11% FX impact at EBIT level (if current rates prevail).
N+1 Singer - Morning Song 21-03-2017
21 Mar 17
accesso Technology (ACSO LN) Full year results in line, but key trading months still ahead | Augean (AUG LN) Double digit growth in ’16, good start to ‘17 | Earthport (EPO LN) Interims show continued top line strength | Goals Soccer Centres (GOAL LN) Good momentum under new team. It’s now all about delivery | IQE (IQE LN) FY’16 results prompt further upgrades | Microsaic Systems (MSYS LN) Challenges in 2016, strategy remains in place | mporium Group (MPM LN) Funds raised to help execute strategy | RhythmOne (RTHM LN) Dawn of the independents | ScS Group (SCS LN) Strong progress on key growth initiatives albeit comps now toughen | Sinclair Pharma (SPH LN) FY results: EBITDA ahead, Instalift™ gaining pace | Vectura Group (VEC LN) FY (9-month) results
N+1 Singer - Augean - Double digit growth in ’16, good start to ‘17
21 Mar 17
Augean reported another year of double digit growth for 2016, with profits in line with our forecasts. Sales grew by 21% excluding landfill tax, while adjusted PBT grew by 18% to £7.1m before amortisation of acquired intangibles. DPS was increased by 54% to 1.0p, 25% ahead of our estimate. The business units made further strategic progress, with revenues from their top 20 customers increasing from 42% to 43% of the total, of which 88% was under contract or a framework agreement, increasing forward visibility. There has been an encouraging start to 2017 and management is confident of delivering another year of profits growth. The shares trade on undemanding single digit multiples, offering good value.