Shares in British credit data firm Experian jumped more than 6% Wednesday after the company reported results for the fiscal 2024 year and issued an upbeat forecast for 2025.
In its results for the year ending March 31, 2024, Experian reported total revenue growth from ongoing activities of 8% at actual exchange rates and 7% at constant exchange rates.
Organic revenue growth stood at 6%, and the company generated $1.9 billion (£1.5 billion) in operating cash flow, benefiting from strong profit margins.
For the fiscal year, Experian reported revenue of $7.1 billion (£5.6 billion) and benchmark earnings before interest and tax (EBIT) of $1.9 billion (£1.5 billion). Benchmark earnings per share were reported at 145.5 cents (115p).
Looking ahead, the company forecasted annual organic revenue growth of 6% to 8% for fiscal year 2025.
Experian also expects margin expansion of 30-50 basis points at constant currency from the FY24 margin of 27.6%, implying a margin of 27.9-28.1%. The current consensus is at 27.8% at the midpoint.
Commenting on this, Morgan Stanley analysts said they “expect the bottom end of the consensus margin range to move upwards following today.”
“New medium term guidance of 30-50bps annual margin accretion and capex tapering 2ppts to ~7% should be well received today,” they added.