Credit data service giant Experian PLC (LSE:EXPN) will prove whether it has backed up its decision to leave annual forecasts unchanged, despite earnings falling 41% in the first half of the year, when it updates on Tuesday, 17 January.
Like many businesses, the FTSE 100-listed credit checker has been threatened by the prospect of reduced consumer spending due to recessionary fears and higher costs since last year.
Hargreaves Lansdown analyst Matt Britzman suggests this is yet to truly take its toll though, commenting: “For now, we’re still seeing signs that consumers are happy to keep spending.”
“That should be positive news for Experian (LSE:EXPN),” he added, highlighting all eyes will be on any outlook Experian makes based on whether “its treasure trove of data is staring to throw out warning signs”.
Britzman focused on Experian’s “revamped” consumer division which saw strong growth last time out, as well as its business wing, with “well placed” products to help lenders looking for less risky borrowers.
Experian also reported that its half year revenue was up 6% to US$3.2bn in November, while pre-tax profit was down 21% and boss Brian Cassin said economic conditions were expected to be tougher over the balance of the year but full year expectations were unchanged.
“We expect organic revenue growth to be between 7-9%, total revenue growth of between 8-10% and modest margin accretion, all at constant exchange rates and on an ongoing basis,” he added.
Experian has seen its share price make a relative resurgence recently, currently sitting at 2,910p, after it fell 39% from a December 2021 peak of 3,362p, to 2,285p in June.