FactSet Research Earns $1.22 Per Share

FactSet Research Systems ($FDS) just reported fiscal Q1 earnings of $1.22 per share. That’s an increase of 10% over last year’s Q1. Three months ago, FDS gave us an earnings range of $1.21 – $1.24 per share, so they’re hitting their internal objectives. Technically, this was below Wall Street’s estimate of $1.24 per share.

“Our investment discipline and proven business model continues to generate shareholder value as illustrated by our 10% adjusted EPS growth. Our buy-side client base is experiencing a healthy business cycle, but we are facing a challenging sell-side environment, which reduced organic ASV,” says Philip Hadley, Chairman and CEO. “As we continue to generate record levels of quarterly free cash flow, I’m pleased to announce a $300 million expansion to our existing share repurchase program. We also completed the acquisition of Revere Data in September and acquired a 60% ownership interest in Matrix Data Limited in December 2013.“

Here are some details: Cash flow for the quarter rose 18% to $53 million. The key number to watch in FactSet’s earnings is Annual Subscription Value, or ASV. Last quarter, ASV rose 5% to $890 million. Of that $890 million, $609 million was domestic and $281 million was foreign. FactSet bought back 530,000 shares last quarter for $57.8 million. These are good numbers.

Now for Q2 guidance. FactSet revenues ranging between $225 million and $228 million. They see earnings coming in between $1.20 and $1.23. FactSet added that the ending of a tax credit for R&D should take a three-cent bite out of earnings. Wall Street’s consensus was for $1.25 per share. Overall, this was a solid quarter for FDS.

Posted by on December 17th, 2013 at 7:19 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.