Shares of the UK-based Experian PLC (GB:EXPN) gained around 2.3% on Tuesday following its Q3 FY24 update, which disclosed a surge in revenue towards the upper limit of the guidance range. The company revised its full-year outlook and now expects organic revenue growth in the range of 5% to 6% (at constant exchange rates) for FY24. The company previously projected revenue growth between 4% and 6%.
The company will publish its full-year numbers for FY24 in May 2024.
Experian is an information services company providing data and analytical tools to organizations across the world.
Resilient Market Demand Boosts Revenue
For the third quarter that ended on December 31, 2023, Experian recorded organic revenue growth of 6% and total revenue growth of 7% at constant exchange rates. The company’s top line was mainly driven by higher demand for its products and new customer acquisitions.
Regionally, its Latin America business delivered 13% revenue growth at constant exchange rates. Latin America contributes to around 15% of the company’s overall revenue. The company is focusing on expanding its business in Latin America by introducing new analysis tools. This will help offset certain weak areas in the lending markets in the U.S. and the UK.
What is the Price Forecast for Experian?
The Experian share price increased by about 8% in 2023 and 64% over the past five years, significantly outperforming the FTSE 100 index. However, analysts expect a modest increase of nearly 5% from the current trading price.
As per the consensus among analysts on TipRanks, EXPN stock has been assigned a Moderate Buy rating. This is based on six Buys, two Holds, and one Sell recommendation.
