RBC Capital analysts provided their outlook on Fair Isaac Corporation (NYSE:FICO) ahead of the upcoming Q3 earnings report, expecting a modest beat and guidance reiteration.
However, the analysts mentioned that the slowdown in consumer lending and mortgage weakness could weigh on B2B Score revenues in 2023 while B2C scores could be impacted by a slowdown in marketing and the indirect impact of weak mortgages.
The analysts expect Q3 revenue to increase 1.9% year-over-year to $345 million, slightly above the Street estimate of $343 million. EPS is estimated to be $4.15, compared to the Street estimate of $3.95 largely due to accelerated share repurchases.
According to the analysts, software revenue growth could be impacted by a slowdown in account growth, weak license sales, and tough comparisons. The analysts reiterated their sector perform rating and $463 price target on the company’s shares.