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UK Stocks: Experian Soars to Record High on Strong Results and Outlook
Global Markets

UK Stocks: Experian Soars to Record High on Strong Results and Outlook

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Shares of the British consumer credit company Experian surged to new heights following the release of its results for FY24, surpassing forecasts.

In major news on UK stocks, Experian PLC (GB:EXPN) shares soared to record highs after the company announced strong results for FY24 and confirmed an upbeat outlook. For the full year, Experian saw organic revenue climb by 6% to $7.06 billion, hitting the upper end of its projections and outperforming analysts’ consensus forecast of 5.5%. The company has projected annual organic revenue growth of 6% to 8% for Fiscal 2025, driven by robust demand for its new products and a resilient performance across its portfolio.

Following the announcement, Experian shares gained 7.6% as of writing, crossing the 3,700 mark for the first time.

Experian is an information services company that provides data and analytical tools to organizations across the world.

Experian’s Robust Growth Fuelled by Market Demand

Experian stated that it has achieved organic revenue growth across all its regions and segments during the year. Among its regions, Latin America experienced double-digit growth, with a strong performance observed in North America. The company witnessed a strong demand for its credit reports from its consumers. However, tighter lending conditions worldwide have impacted certain business lines with direct exposure.

Within its segments, the organic revenue for Consumer Services surged by 7%, while that for B2B business grew by 5%. Additionally, Experian’s annual operating profit increased by 34%, reaching $1.69 billion, with margins growing from 27.5% to 27.6%. For FY25, the company anticipates a margin expansion of 30-50 basis points at constant currency to a range of 27.9% to 28.1%.

Overall, statutory profit before tax reached $1.55 billion, marking a 32% increase over FY23. This growth can be attributed to revenue expansion and decreased non-benchmark costs compared to the previous year.

Speaking of shareholders’ returns, Experian increased its dividend by 7% to 58.5 cents per share.

Is Experian a Good Share to Buy?

As per the consensus among analysts on TipRanks, EXPN stock has been assigned a Moderate Buy rating based on five Buy and three Hold recommendations. The Experian share price target is 3,825.88p, which is 4% above the current level.

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