Fico Score Founder Fair Isaac Revise Earnings

Fair Isaac, the leading provider of analytics and decision technology, and creator of the ever present Fico score, slashed forecasts dramatically amid weak sales.

For the second quarter, ended March 31, Fair Isaac had expected a profit of 48 cents per share on revenue of $215 million, but now expects a profit of 35 cents to 37 cents per share on revenue of $200 million to $202 million.

The lower forecasts were blamed primarily on operations and personnel, as company executives sited the products themselves as great, but weren’t sold as they should have been.

Full-year 2007 results were also slashed tremendously, from $2.15 per share on revenue of $870 million to earnings of $1.55 to $1.65 per share on revenue of $795 million to $805 million.

The recent slowdown in the mortgage industry led many to wonder if the lack of mortgage applications was slowing down sales of Fico scores and other credit-related tools.

According to Greene, while there was softer demand for mortgage-related credit products, the increased interest in fraud-related tools has made up for the difference.

The news also caused analysts at Citigroup and Soleil to downgrade shares of Fair Isaac to a “hold” rating from a previous “buy” rating.

Shares of Fair Isaac were down just over 8 percent, at 37.26 in midday trading on the New York Stock Exchange.

The Vice President sold 2,800 shares of common stock at a sales price of $40 under a prearranged trading plan, according to a Securities and Exchange Commission filing.

Related Topics:

1. Fico Score Founder to Miss Earnings Estimates
2. Fair Isaac to End Credit Piggybacking Practice
3. Fair Issac to Make Changes to Fico Score Formula
4. Fico Score to Get a Makeover
5. New Fico Score to Include Authorized User Data