Experian Shares (LON:EXPN) Soar On Revenue Beat & FY25 Outlook Surprises

Experian shares (LON: EXPN) added 8.41% today, giving investors something to cheer post earnings as the stock hit 52 week highs, ending very close to the top of the range. The surge comes in the wake of the company's announcement of its financial results for the fiscal year 2024, which ended on March 31st, and its optimistic guidance for fiscal 2025.

Experian reported an 8% increase in total revenue at actual exchange rates and a 7% rise at constant exchange rates for the year ending March 31, 2024. These figures reflect the company's ability to grow in a challenging economic environment and indicate the robustness of its business model.

The data giant also reported impressive operational performance, with operating cash flow reaching $1.9 billion. The company's revenue stood at $7.1 billion, while benchmark earnings before interest and taxes (EBIT) also came in at $1.9 billion for the 2024 fiscal year. These results exhibit Experian's strong cash generation and profitability, affirming its place as a leading player in the credit data industry.

For fiscal year 2025, Experian has forecasted organic revenue growth between 6% and 8%. Even more encouraging for shareholders, the firm expects margin expansion of 30-50 basis points from the fiscal 2024 margin of 27.6%. This projection indicates not only growth but also improved efficiency in operations, which may lead to enhanced profitability.

Analysts at Morgan Stanley have taken note of Experian's new medium-term guidance, with expectations that the consensus margin range for the company will trend upwards. This suggests higher confidence among analysts and investors regarding Experian's future earnings potential. The firm have maintaned an Overweight rating and a price target of GBP35.00.

Experian's fiscal year 2024 results have put the company in a strong position as it heads into 2025. The growth in revenues and margins, coupled with robust cash flows and favourable analyst expectations, demonstrates the effectiveness of its strategies and the potential for continued success