By Dhirendra Tripathi
Investing.com – Experian (OTC:EXPGF) stock fell nearly 2% Friday in London as the company’s higher guidance underwhelmed traders.
The company raised both its total revenue growth as well as organic revenue growth estimates, but changes were made only to the lower end of the guidance range in either case.
Experian (LON:EXPN) said it is expecting its annual revenue to grow between 16% and 17%, above an earlier forecast of 15% to 17%. Similarly, the organic revenue growth forecast has been revised to 12%-13%, as against 11%-13% estimated earlier.
North America, Experian’s largest market grew a strong 16%, but other key geographies like Latin America, the U.K., Europe and Asia Pacific were sluggish.
The company benefited from U.S. consumers’ appetite for credit in the second year of the pandemic. Demand for Experian’s credit scores and reports that contain key data on consumers was strong as its clients reached out to more of them to expand their business.
Total revenue grew 14% in the third quarter ended December 31. Organic revenue rose 11%. The company’s verification services won new clients in North America. A spike in short-term lending during the holiday season also helped volumes, according to the company.