No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Data and technology firm Experian posted 8% total revenue growth and 7% organic growth for the first quarter on Thursday, with strong B2B momentum across major markets offsetting softer trends in parts of consumer services, but disappointing organic revenue guidance came in below market expectations and weighed on the stock in early trade.
Experian said it had delivered broadbased growth across its regions in the three months ended 30 June, with North America, Latin America and the UK & Ireland all posting solid performances, while EMEA and Asia Pacific remained more subdued.
North America, which accounts for 67% of group revenues, grew 7% organically, with B2B up 11% on strong demand for Ascend analytics, fraudprevention tools and automotive and health solutions. Consumer Services fell 2% due to the winddown of two mass databreach contracts, but underlying growth was 3%.
Latin America posted 12% organic growth, with B2B rising 9%, supported by strong momentum in Brazil across major banks and telecoms, while the UK and Ireland delivered 5% organic growth and 7% total growth, helped by ite acquisition of KYC360, and EMEA and Asia Pacific grew 1% organically, held back by tough prioryear comparatives, though proprietary scores and Ascend continued to gain traction.
Groupwide, B2B grew 9% organically, while consumer services was up 2%.
However, Experian head south early on Thursday after its outlook implied slower organic growth than traders had expected, prompting concerns that the firm's guidance offered limited scope for upgrades and adding to existing worries over competitive pressures in data and analytics.
Chief executive Brian Cassin said: "We delivered a strong start to FY27, with Q1 revenue increasing 10% at actual exchange rates, 8% at constant currency and 7% organically, in line with our expectations.
"Our full-year expectations are unchanged. We continue to execute well, supported by our trusted data assets, scaled platforms and growing AI-enabled opportunities."
As of 0815 BST, Experian shares were down 5.72% at 2,554.08p.
Reporting by Iain Gilbert at Sharecast.com
See latest RNS at Investegate