Experian (EXPN) £27.12

Loss to date: -11.6%
Original entry point: Buy at £30.69, 15 October 2020

Credit checking and data services provider Experian (EXPN) has continued to perform well against the backdrop of the pandemic, reporting better than expected third quarter organic revenue growth of 7% and 10% overall constant currency growth (19 Jan).

The US remained the driving force with core data services growing at 12% offset by weak automotive-related business. Consumer services was very strong, up 18% driven by rising memberships.

Latin America, around 14% of the total group also exhibited good organic growth of 13% driven by very strong consumer services in Brazil which grew 178% as memberships increased to 56 million.

The UK and Ireland struggled with revenue dropping 2% although one bright spot was consumer services which returned to growth.

The rest of the world comprising Europe, Middle East and Asia Pacific saw an 11% decline in organic revenues.

The company guided for slower fourth quarter growth within the range of 3% to 5% impacted by the tough comparatives of last year.

Full-year earnings before interest are expected to be between $1.36 billion and $1.38 billion, around 2% higher than current the consensus analyst forecast of $1.34 billion according to data from Refinitiv.

SHARES SAYS: The resilience of the business and positive outlook means the shares remain a buy.

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