ii view: Experian sales boosted by credit demand in the US
Big in data across markets from the UK and Ireland to Brazil and India. We assess prospects for this FTSE 100 company.
15th January 2025 11:22
by Keith Bowman from interactive investor

Third-quarter trading update to 31 December
- Total currency adjusted revenues up 8%
Guidance:
- Continues to expect full-year organic currency adjusted revenue growth of between 6% and 8%
Chief executive Brian Cassin said:
“We delivered another strong quarter of growth in Q3. Our growth expectations for the full year are unchanged.”
- Invest with ii: What is a Managed ISA? | Open a Managed ISA | Transfer an ISA
ii round-up:
Global information and credit services company Experian (LSE:EXPN) today detailed sales in line with management’s prior forecasts, aided by steadily improving underlying trends in its core North American market.
Third-quarter currency adjusted sales stripped of acquisitions rose 6% year-over-year, or by 8% when excluding an earlier year data breach incident. That’s at the top end of management’s previous 6-8% full-year guidance. Adjusted sales in North America, accounting for just over two-thirds of overall group sales, climbed 9%, helped by demand for mortgages and auto loans.
Shares in the FTSE 100 company drifted marginally lower in UK trading having come into this latest news up 10% over the last year. US rival Equifax Inc (NYSE:EFX) has gained 4% over that time, while the FTSE 100 index is up 8%.
Experian’s data helps consumers buy cars and houses and assists companies in offering credit prudently. The Dublin headquartered company continues to expect a gain in the annual profit margin of up to 0.5%, driven by the introduction of new products and advanced analytics.
Total sales for Experian’s second-biggest region, Latin America, generating 14% of groupwide revenues, improved 10% when adjusted for currency movements, aided by acquisitions.
Elsewhere, adjusted UK and Irish revenues rose 1%, hindered by the subdued UK economic backdrop, while those for the rest of the world improved 6%, pushed by strength in Australia, South East Asia and India.
Broker Morgan Stanley reiterated its ‘overweight’ stance on the shares post the update, flagging Experian as a ‘top pick.’
ii view:
Started in 1996, Experian today employs around 22,500 people across more than 30 countries. The group sells data to credit-granting institutions, individuals and other users, along with analytical tools and marketing data. Data is obtained from several sources, including retail customers, often at low or no cost. Business or B2B sales generate most revenues at close to three-quarters, with Consumer services the balance.
For investors, high interest rates will likely cause consumer caution when considering new loans. Costs for businesses generally remain elevated. A previous data breach has hindered performance, while a forecast one-year price/earnings (PE) ratio above the 10-year average may suggest the shares are not obviously cheap.
To the upside, hopes regarding further interest rate cuts across much of the world persist. Relatively low rates of unemployment in many of Experian’s core markets should help support demand for credit. Bolt-on acquisitions continue to be made, while its Latin American (largely Brazil) business has been expanded into Colombia, Peru, Chile and Panama.
On balance, and despite ongoing risks, the increasing value of data and a consensus analyst estimate of fair value sat at over £43 per share look to offer reasons for continued investor support.
Positives:
- Company enjoys both product and geographical diversity
- Growing free consumer memberships
Negatives:
- Uncertain economic outlook
- Subject to currency movements
The average rating of stock market analysts:
Buy
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.