Latest news with #FICO
Yahoo
5 hours ago
- Business
- Yahoo
Fair Isaac (FICO) Q3 Earnings and Revenues Surpass Estimates
Fair Isaac (FICO) came out with quarterly earnings of $8.57 per share, beating the Zacks Consensus Estimate of $7.73 per share. This compares to earnings of $6.25 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +10.87%. A quarter ago, it was expected that this financial services company would post earnings of $7.39 per share when it actually produced earnings of $7.81, delivering a surprise of +5.68%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Fair Isaac, which belongs to the Zacks Computers - IT Services industry, posted revenues of $536.42 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.40%. This compares to year-ago revenues of $447.85 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Fair Isaac shares have lost about 24.4% since the beginning of the year versus the S&P 500's gain of 8.3%. What's Next for Fair Isaac? While Fair Isaac has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Fair Isaac was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $7.97 on $528.91 million in revenues for the coming quarter and $29.42 on $1.99 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Amdocs (DOX), another stock in the same industry, has yet to report results for the quarter ended June 2025. The results are expected to be released on August 6. This provider of computer systems integration is expected to post quarterly earnings of $1.71 per share in its upcoming report, which represents a year-over-year change of +5.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Amdocs' revenues are expected to be $1.13 billion, down 9.7% from the year-ago quarter. 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 Fair Isaac Corporation (FICO) : Free Stock Analysis Report Amdocs Limited (DOX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
7 hours ago
- Business
- Yahoo
FICO raises full-year profit forecast amid robust demand for its products
(Reuters) -Credit scoring giant Fair Isaac Corporation, widely known as FICO, raised its forecast for full-year adjusted profit on Wednesday, reflecting robust demand for its products. The company now expects $718 million, or $29.15 per share, in adjusted profit for 2025, compared to its previous forecast of $712 million, or $28.58 per share. Shares of the Bozeman, Montana-based company rose 1.5% in extended trading. FICO also reported a jump in third-quarter profit, buoyed by strong performance in its scoring business. While the broader lending environment has remained muted in recent years, FICO has benefited from strong pricing power given its dominant position in mortgage scores. The company is best known for its FICO score, the standard measure of consumer credit risk used by banks, credit card issuers, mortgage lenders and auto loan providers. Scores revenue, which includes its business-to-business and business-to-consumer scoring solutions, jumped 34% to $324.3 million in the third quarter. Software revenue rose 3% to $212.1 million in the quarter. FICO's total revenue jumped 20% to $536.4 million from a year earlier. FICO's adjusted profit for the quarter totaled $210.6 million, or $8.57 per share, compared with $156.4 million, or $6.25 per share, a year earlier. Investor sentiment around the company has weakened this year after coming under fire from Federal Housing Finance Agency (FHFA) Director Bill Pulte over FICO pricing. Earlier this month, the FHFA also allowed the use of VantageScore for mortgages sold to Fannie Mae and Freddie Mac. The move introduces direct competition to FICO in the mortgage market and has raised concerns about its ability to continue raising its pricing. VantageScore, founded in 2006, is a joint venture between credit bureaus Equifax, Experian and TransUnion. FICO stock has plunged 23.3% so far this year, underperforming the benchmark S&P 500 index. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11 hours ago
- Business
- Yahoo
What is a FICO score, and why should you know yours?
Several companies calculate credit scores, but one stands out as the gold standard: Fair Isaac Corporation (FICO), the company that invented the credit score algorithm in 1989. FICO credit scores are calculated by using the information in your credit reports, and they're used by the majority of creditors to make decisions about whether you qualify for mortgages, credit cards, loans, and more. As a credit expert and former NFCC-certified credit counselor, here's what I want you to know about your FICO credit scores. How are FICO credit scores calculated? A FICO credit score is a three-digit number that reflects the information in your credit reports. You can think of them like letter grades that reflect how well you performed in a class. Except instead of English or History, the subject is Debt Management, and the grades range from 300 (which is equivalent to an "F") up to 850 (which is a perfect "A+"). FICO creates your credit scores by taking the details of your debt and running it through one of their many credit score algorithms. Scores are based on five key categories, each weighted differently: Payment history (35%): The most heavily weighted credit score factor evaluates whether you pay your bills on time. Late payments, defaults, charge-offs, collections, bankruptcies, and foreclosures can significantly lower your scores. Amounts owed (30%): This factor focuses on how much of your available credit you're using, also known as your credit utilization ratio. For example, if you have $5,000 in available credit and currently carry a balance of $1,500, your utilization is 30%. Length of credit history (15%): This measures how long your accounts have been open, as well as the average age of accounts. The longer your credit history, the better. New credit (10%): This looks at how many new accounts you've opened recently and how many hard inquiries are listed on your credit reports. Too many hard credit checks in a short period can hurt your scores. Credit mix (10%): Finally, your credit mix evaluates how many different types of credit you have experience using (credit cards, installment loans, mortgage, auto loan, etc.). You don't need every type of account to have good credit, but a variety shows you can manage different forms of debt responsibly. If you have a long history of paying your debt as agreed, and you keep your borrowing to a minimum, you're likely to have good FICO scores. Read more: 8 factors that don't affect your credit scores Types of FICO scores It's important to understand that you have multiple credit scores, including different types of FICO scores. Your particular credit profile can produce different FICO scores depending on the version being used and which credit bureau (Experian, Equifax, or TransUnion) is reporting the information. FICO Score 8 is the most commonly used version today. However, there is a newer version known as FICO Score 9, which places less weight on medical collection accounts and completely ignores paid collections. In 2020, FICO released FICO Score 10 and 10T, which are meant to be even more precise when it comes to determining risk but have been slow to roll out among lenders. Older versions, such as FICO 2, 4, and 5, are also often used by mortgage lenders because these scores are hard-coded into Fannie Mae and Freddie Mac's underwriting systems. In addition to these base scores, FICO also has industry-specific scores, which use a range of 250 to 900. For instance, FICO Auto Scores are used by auto lenders to evaluate car loan applicants and weigh your history with auto loans more heavily. Meanwhile, FICO Bankcard Scores are used by credit card issuers and place more emphasis on your revolving credit history. Read more: VantageScore vs. FICO: How these two major credit scoring models compare Up Next Up Next How to improve your FICO scores One of the most common questions I hear about credit scores is, "How do I improve my credit scores fast?" The truth is, there's no way to improve your credit scores overnight, and it can take decades to achieve a perfect 850 credit score. However, there are a couple of ways you might be able to make significant FICO score gains over the course of a month or more. Plus, you can also practice good debt management habits to build and maintain good credit scores throughout your lifetime. Here are some strategies that work. Become an authorized user When you're in a hurry to increase your FICO scores, one of the best options I can recommend is to see if a loved one will add you to their credit card as an authorized user. With credit cards, an authorized user is someone who is not legally liable for the debt, but is still authorized by the main cardholder to use the account. When you become an authorized user, the information about the credit card will appear on your credit reports and be used to calculate your scores. That includes the past payment history, amount owed, and other account details. So, for this approach to work, the primary cardholder has to have a positive history with the account. Reduce your credit utilization One of the only other ways to gain FICO score points fast (30 to 45 days at minimum) is to reduce your credit utilization. The lower the percentage of available credit you're using, the better it is for your scores. There are two ways you can make improvements to your credit utilization. If possible, I recommend using a combination of both strategies to accelerate your progress: Pay down your credit card balances as low as possible. Ideally, pay off the full balance each month. Log into your credit card account and request a limit increase once a year (but don't increase your balances). Make debt payments on time Of the five categories that impact your FICO credit scores, the most important one is your payment history. When it comes to this area of your credit, slow and steady wins the race. You can build up good credit by making sure you pay at least the minimum amount due on your debt accounts, on or before the due date, every single month. Review your credit reports Finally, be sure to monitor the information in your credit reports, as it can directly impact your credit scores. You can pull your credit reports for free on a weekly basis from Be sure to review them for errors, such as payments that are incorrectly reported as late. You can file free disputes to fix any errors you find. Read more: This map highlights the average credit score in every state Frequently asked questions (FAQs) What is a FICO score in simple terms? A FICO score is a credit score that's calculated by a company called Fair Isaac Corporation (FICO). What is a good FICO score? According to FICO, most creditors will consider your scores "good" if they fall between 670 and 739 (on a scale of 300 to 850). What is my FICO score vs. credit score? There are several companies that calculate credit scores, including VantageScore and some of the credit bureaus, but it's only a FICO score if it's calculated by Fair Isaac Corporation.
National Post
15 hours ago
- Business
- National Post
FICO Survey Finds Canadians Increasingly Justify First-Party Fraud Amid Rising Inflation Rates
Article content TORONTO — FICO (NYSE: FICO) Global analytics software leader, FICO released new findings from the 2025 Consumer Survey: Fraud, Identity and Digital Banking CA highlighting Canadians' experiences with application fraud and their perceptions of how well banks are meeting their needs. The survey found that nearly one-third of respondents view first-party fraud—such as providing false information on financial applications—as acceptable in certain circumstances or even normal behavior. Many respondents cited the ongoing cost-of-living crisis as justification. Article content As inflation continues to stretch household budgets, some consumers may be more likely to falsify application details in pursuit of credit. This poses an ongoing challenge for banks, which must detect fraud without adding unnecessary friction for legitimate applicants. Strengthening fraud prevention strategies while preserving trust and accessibility will be key to meeting evolving customer expectations. Article content Identity verification is a crucial balancing act for banks Article content As more Canadians embrace digital banking, their expectations for more efficient and secure experiences are rising. According to the survey, 31% are now more likely to open a financial account online than they were a year ago. At the same time, many reported noticing an increase in identity verification checks. Nearly half (49%) reported experiencing more frequent checks during online purchases, and the same (49%) while logging into bank accounts. While these measures are important for security, they can also create friction: 15% of consumers have reduced or stopped using their checking accounts, and 17% have done the same with credit cards due to the difficulty of identity checks—slightly higher than in 2023. These trends suggest the importance of striking a balance. While security remains a top priority, banks also need to ensure that digital processes remain user-friendly and accessible to keep customers engaged. Article content 'Canadians are demanding seamless digital banking and verification processes,' said Adam Davies, vice president of product management at FICO. 'Nearly 20% of consumers will abandon a checking account if identity checks are too difficult or time-consuming. Banks must continue to make opening processes convenient and secure to attract new customers and build trust.' Article content Rising demand for banks to offer digital new account openings Article content 32% of Canadians say they are more likely to open a financial account digitally than they were a year ago. Across several product types, expectations for speed are high, over 40% of personal loan, credit card, and card loan applicants expect to spend less than 30 minutes opening a checking account. If the application process is too long and difficult, Canadians will abandon the application. These insights re-emphasize the needs for banks to optimize onboarding journeys to retain applicants and reduce abandonment rates. Article content Consumers are concerned with fraud and identity theft Article content Canadians continue to place high value on security. The survey found that 30% of consumers rank good fraud protection as one of the top three considerations when selecting a new account, while 71% rank it in their top three. Fingerprints and facial recognition were marked as a favorite security choice as 62% of consumers report that they either like or have a strong preference to use fingerprints, with 81% rating their security as good or excellent. Article content At the same time, Canadians are seeing a rise in stolen identities. 6% of Canadians reported their stolen identity was used by a criminal to open a financial account—equating to approximately 1.8 million victims and marking an increase from 5% in 2023 and 5.6% in 2020. Despite the rising risk, many Canadians underestimate their personal exposure. While 71% of consumers rank the use of stolen identity to open an account as a top three fraud concern, 40% believe it's unlikely to have happened to them, and 23% are confident their identity has never been used this way. This disconnect between concern about identity theft and personal risk perception suggests many Canadians may be unaware they've already been affected or that they are currently at risk. Article content For more details and insights regarding the survey results, download the 2025 Consumer Survey: Fraud, Identity and Digital Banking CA eBook. This survey was issued to 1,000 Canadian bank customers across age and income demographics. Article content For more information on how FICO can help financial services organizations exceed customer needs and expectations, visit About FICO FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting four billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency. Article content Article content Article content Article content Article content
Yahoo
16 hours ago
- Business
- Yahoo
FICO Survey Finds Canadians Increasingly Justify First-Party Fraud Amid Rising Inflation Rates
Canadians are committing fraud to gain credit during cost-of-living crisis TORONTO, July 30, 2025--(BUSINESS WIRE)--FICO (NYSE: FICO) Global analytics software leader, FICO released new findings from the 2025 Consumer Survey: Fraud, Identity and Digital Banking CA highlighting Canadians' experiences with application fraud and their perceptions of how well banks are meeting their needs. The survey found that nearly one-third of respondents view first-party fraud—such as providing false information on financial applications—as acceptable in certain circumstances or even normal behavior. Many respondents cited the ongoing cost-of-living crisis as justification. As inflation continues to stretch household budgets, some consumers may be more likely to falsify application details in pursuit of credit. This poses an ongoing challenge for banks, which must detect fraud without adding unnecessary friction for legitimate applicants. Strengthening fraud prevention strategies while preserving trust and accessibility will be key to meeting evolving customer expectations. Identity verification is a crucial balancing act for banks As more Canadians embrace digital banking, their expectations for more efficient and secure experiences are rising. According to the survey, 31% are now more likely to open a financial account online than they were a year ago. At the same time, many reported noticing an increase in identity verification checks. Nearly half (49%) reported experiencing more frequent checks during online purchases, and the same (49%) while logging into bank accounts. While these measures are important for security, they can also create friction: 15% of consumers have reduced or stopped using their checking accounts, and 17% have done the same with credit cards due to the difficulty of identity checks—slightly higher than in 2023. These trends suggest the importance of striking a balance. While security remains a top priority, banks also need to ensure that digital processes remain user-friendly and accessible to keep customers engaged. "Canadians are demanding seamless digital banking and verification processes," said Adam Davies, vice president of product management at FICO. "Nearly 20% of consumers will abandon a checking account if identity checks are too difficult or time-consuming. Banks must continue to make opening processes convenient and secure to attract new customers and build trust." Rising demand for banks to offer digital new account openings 32% of Canadians say they are more likely to open a financial account digitally than they were a year ago. Across several product types, expectations for speed are high, over 40% of personal loan, credit card, and card loan applicants expect to spend less than 30 minutes opening a checking account. If the application process is too long and difficult, Canadians will abandon the application. These insights re-emphasize the needs for banks to optimize onboarding journeys to retain applicants and reduce abandonment rates. Consumers are concerned with fraud and identity theft Canadians continue to place high value on security. The survey found that 30% of consumers rank good fraud protection as one of the top three considerations when selecting a new account, while 71% rank it in their top three. Fingerprints and facial recognition were marked as a favorite security choice as 62% of consumers report that they either like or have a strong preference to use fingerprints, with 81% rating their security as good or excellent. At the same time, Canadians are seeing a rise in stolen identities. 6% of Canadians reported their stolen identity was used by a criminal to open a financial account—equating to approximately 1.8 million victims and marking an increase from 5% in 2023 and 5.6% in 2020. Despite the rising risk, many Canadians underestimate their personal exposure. While 71% of consumers rank the use of stolen identity to open an account as a top three fraud concern, 40% believe it's unlikely to have happened to them, and 23% are confident their identity has never been used this way. This disconnect between concern about identity theft and personal risk perception suggests many Canadians may be unaware they've already been affected or that they are currently at risk. For more details and insights regarding the survey results, download the 2025 Consumer Survey: Fraud, Identity and Digital Banking CA eBook. This survey was issued to 1,000 Canadian bank customers across age and income demographics. For more information on how FICO can help financial services organizations exceed customer needs and expectations, visit About FICO FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting four billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency. Learn more at Join the conversation at & For FICO news and media resources, visit FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries. 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