FactSet Stock Rises on Q3 Profit Beat, Raised Guidance

By
Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published June 21, 2024
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Key Takeaways

  • FactSet Research Systems beat third-quarter profit forecasts and raised its full-year outlook as revenue and operating margin gained.
  • The financial data provider said sales to institutional asset managers, asset owners, partners, and corporates increased.
  • FactSet boosted its 2024 adjusted earnings per share (EPS) estimate, although it lowered its revenue guidance.

FactSet Research Systems (FDS) shares advanced Friday after the financial data provider posted significantly better-than-expected profit and boosted its full-year guidance on higher revenues from institutional asset managers, asset owners, partners, and corporates.

The company posted fiscal 2024 third-quarter adjusted earnings per share (EPS) of $4.37, well above analysts' consensus estimate of $3.90 compiled by Visible Alpha. Revenue rose 4.3% year-over-year to $552.7 million, basically in line with forecasts. Organic revenue was up 4.5%.

Adjusted operating margin jumped to 39.4% from 36.0% a year earlier, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $239.9 million, an increase of 16.9%.

The company’s Annual Subscription Value (ASV) plus professional services came in at $2.22 billion, 4.7% higher. The number of FactSet users climbed by 1,662 to 208,140. The company noted the gains came from all firm types except banking, and was driven mainly by wealth clients. 

Chief Executive Officer (CEO) Phil Snow said FactSet continues to be optimistic, and it plans to "harness the power of generative AI to accelerate our clients' efficiency and decrease their total cost of ownership."

FactSet Raises FY Adjusted EPS, Lowers Revenue Guidance

FactSet lifted its full-year adjusted EPS outlook to a range of $16.00 to $16.40, up from the previous $15.60 to $16.00. However, it sees revenue of $2.18 billion to $2.19 billion, down from the earlier $2.20 billion to $2.21 billion.

FactSet Research Systems shares rose about 5% to $428.49 soon after the opening bell Friday but are down more than 10% year-to-date.

Article Sources
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  1. FactSet Research Systems. "FACTSET REPORTS RESULTS FOR THIRD QUARTER 2024."

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