Shares of British credit data company Experian jumped more than 6% on Wednesday after the company reported results for the 2024 financial year and issued an upbeat outlook for 2025.
In its results for the year ended March 31, 2024, Experian said overall operating revenue growth was 8% at actual exchange rates and 7% at constant exchange rates.
Organic revenue growth was 6% and the company generated $1.9bn (£1.5bn) in operating cash flow, driven by strong profitability.
For the financial year, Experian reported revenue of $7.1 billion (£5.6 billion) and underlying earnings before interest and tax (EBIT) of $1.9 billion (£1.5 billion). Basic earnings per share were 145.5 cents (115 pence).
Looking ahead, the company projects annual organic revenue growth of 6% to 8% in fiscal 2025.
Experian also expects margin expansion of 30-50 basis points at constant currency compared to FY24 margin of 27.6%, implying margin of 27.9-28.1%. The current consensus is 27.8% at the midpoint.
Commenting on this, Morgan Stanley analysts said they “expect the lower end of the consensus margin range to move higher after today.”
“New medium-term forecasts for an annual increase in margins of 30-50 bps. and a 2pp capex cut to ~7% should be well received today,” they added.