At 35 times earnings, for 7% revenue growth seems expensive. But maybe it's justified given dominant position. No position but would like one... |
same as QQ. Imperial |
I cannot understand why the market hates these results so much! |
4*
Experian plc, the global data and technology company, posted decent Interims ended 30 September 2024 this morning. The Group reported strong H1 progress. Q1 organic revenue growth was 7%, with Q2 organic revenue growth also at 7%, resulting in total revenue growth from ongoing activities of 7% at constant and 6% at actual exchange rates. Benchmark EBIT from ongoing activities rose 10% at constant exchange rates and 8% at actual exchange rates to US$1,011m, with a Benchmark EBIT margin of 28.0%, up 60 basis points at actual exchange rates and constant currency. Statutory profit...from WealthOracle
wealthoracle.co.uk/detailed-result-full/EXPN/974 |
I was expecting better response to good results but still better than falling on poor results |
The market does not seem to like the results. |
Margins expanding nicely - wish all my shares were this consistent |
The update should be good and the share price could easily break the £40 barrier. |
Trading update on Wednesday (13th)Anyone care to add any thoughts Things seem to be going well, hopefully we will see a continuation of that going forward |
Elsewhere, Experian rose 0.26% after Deutsche Bank upgraded the stock to ‘buy’ from ‘hold,’ raising its price target from 3,500p to 4,750p. |
RBC Capital Markets lifted its stance on Experian to 'sector perform' from 'underperform' on Thursday as it transferred coverage, hiking its price target on the stock to 4,200.0p from 2,500.0p.
The bank said Experian is a leading and diversified credit bureau with a leadership position in consumer services, analytics (Ascend platform), and Brazil, addressing $150bn total addressable market.
"In addition, several strategic growth initiatives, including the Insurance marketplace, Verification, Health, Targeting, and Auto, along with mortgage tailwinds and stable lending trends, should help deliver on the high single digit revenue growth," RBC said. "Cloud-native technology transformation bodes well for lowering capex and delivering 30-50 basis points annual margin expansion." |
16 July 2024 ─ Experian plc, the global data and technology company, today issues an update on trading for the three months ended 30 June 2024.
Brian Cassin, Chief Executive Officer, commented:
"We delivered good growth in Q1, consistent with our expectations. Revenue was up 7% at actual exchange rates from ongoing activities and 8% at constant exchange rates, with organic revenue growth of 7%.
Our growth expectations for the full year are unchanged. We continue to expect organic revenue growth of between 6-8% and margin accretion of 30-50 basis points, all at constant exchange rates and on an ongoing basis." |
I expect this to hit £40 this year. |
A wonderful market response! |
 Excellent results :
7am, 15 May 2024 ─ Experian plc, the global data and technology company, today issues its financial report for the year ended 31 March 2024.
Brian Cassin, Chief Executive Officer, commented:
"FY24 growth was at the top end of our expectations. Total revenue growth from ongoing activities was 8% at actual exchange rates and 7% at constant exchange rates. Organic revenue growth was 6%, we raised margins and delivered US$1.9bn of operating cashflow.
"For FY25, we expect further strategic progress and expect to deliver organic revenue growth in the range of 6-8%. We also expect good margin expansion, in the range of 30-50 basis points, at constant currency.
"Looking further ahead, we expect the combination of economic recovery, continued new product and vertical market expansion as well as productivity gains from technology cloud transition to elevate our financial performance. We anticipate strong organic revenue growth, good margin accretion and reduced levels of capital expenditure." |
EXPERIAN TO ACQUIRE ILLION IN AUSTRALIA AND NEW ZEALAND
4 April 2024 - Experian, the global information services company, is pleased to announce that it has signed an agreement to acquire illion, one of the leading consumer and commercial credit bureaus in Australia and New Zealand.
Brian Cassin, Chief Executive Officer said:
"We are delighted to announce that Experian has entered into an agreement to acquire illion, a highly complementary business to Experian in Australia and New Zealand (A/NZ), which will enhance the competitive dynamics in this important market. This marks a pivotal step in our longstanding commitment to the region and reinforces our dedication to delivering exceptional value and more choice to clients in A/NZ."
Overview and Strategic Rationale
Established in 1986 in Australia, illion is a bureau provider of consumer credit reporting, commercial credit reporting, and identity and verification solutions in Australia and New Zealand.
Our strategy in EMEA and Asia Pacific is to focus on markets where we have a clear opportunity to operate at scale and deliver innovation-led growth. Experian has successfully operated in A/NZ for over 30 years, serving lending and other institutions with decisioning software, open data and data quality services, as well as consumer bureau services. Australia is currently Experian's fifth largest country of operation by revenue.
The Australian lending market, like many of our developed markets, is on a journey to help widen access to credit, lower lending costs and improve digital banking services for consumers and businesses. A series of regulatory reforms in Australia have introduced comprehensive (positive) data and open data services and have widened the array of data assets, scores and analytical insights being adopted by banks and other institutions. This has enhanced appetite for analytical tools and data-driven services, expanding our addressable market opportunity.
The acquisition of illion will enable Experian to make full use of this opportunity and offer enhanced choice in A/NZ by providing a meaningful competitive alternative to help businesses accelerate the adoption of digital services. It is highly complementary and synergistic to Experian A/NZ, the combination of which would present a more complete service for clients, adding depth in consumer bureau services, an attractive position in commercial credit bureau services as well as capabilities in identity management solutions. This compares to Experian's strengths in analytical product capability, decisioning software and certain open banking solutions.
More businesses in A/NZ will benefit from Experian's leading global platforms to speed up the process of credit granting, enhance digital experiences for users, reduce fraudulent exposure and improve efficiency in banking and other sectors. Experian will be well positioned to introduce more innovation in Australia through capabilities such as the Experian Ascend unified platform, which encompasses Experian's sophisticated analytics, and our PowerCurve decisioning suite.
Financial information
The acquisition of 100% of illion is for a total consideration of up to A$820m (c.US$532m*), payable on completion of the transaction and to be funded from Experian's existing cash resources. The acquisition is subject to regulatory review by the competition authority in Australia which we anticipate will conclude in the second half of calendar year 2024. In the first full year of ownership we expect the acquisition to add revenues of c. A$175m and Benchmark EBITDA of c. A$65m. This compares to Experian revenues in A/NZ which are expected to be c. A$115m in FY24.
* AUS$/US$ spot exchange rate of 1.54 as at 3 April 2024 |
Nice to know. |
Experian edged up 0.41% after JPMorgan Cazenove identified it as a top pick in the European business services sector, along with Bureau Veritas, both rated 'overweight'.
“Experian remains our most-preferred long-term pick in European business services, and a top pick for the rest of 2024,” it said.
“We have confidence the company will grow at least high single digit percentage organically in the medium term supported by its high-quality portfolio of new products at different stages of development.
“Experian has a strong balance sheet and opportunities for value-add acquisitions, on top of continued organic investments.”
Reporting by Josh White for Sharecast.com. |
Jefferies has upgraded its rating on Experian from 'hold' to 'buy' and hiked its target price by nearly 40%, saying that growth is at an inflection point for the data analytics and credit ratings agency.
"We present new analysis on Brazilian credit and global web traffic/app usage that gives us confidence on inflecting growth in Experian's Latam division and B2C activities. We believe both dynamics are underappreciated by consensus," Jefferies said in a research report on Wednesday.
Meanwhile, credit volume projections in the US are pointing to a stabilisation through most of 2024, with "early signs of a recovery" in the second half of 2025.
The broker said some $2.8bn to $4.0bn could be spent on M&A over the next 12 months – "either data assets and/or bolt-on capabilities in areas of strategic focus".
Regarding the stock's valuation, Jefferies said Experian's shares are trading at the bottom of its recent range, and was currently trading at a 15% discount to similar peers on a price-to-earnings basis.
"We believe that as the market focus moves past volume uncertainties, the narrative will shift toward recognising the strong structural growth and product innovation embedded in Experian," the broker said. |
Certainly encouraging. |
Very positive trading update today. |
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