FactSet Earned $2.42 per Share for Q2

This morning, FactSet (FDS) reported earnings for its fiscal second quarter, and the results were pretty good. This is for the quarter that covered December, January and February.

For Q2, FactSet earned $2.42 per share compared with $2.12 per share last year. Wall Street had been expecting $2.33 per share. Quarterly revenue rose 5.9% to $354.9 million, and organic revenue rose 5.7%. Annual Subscription Value, or ASV, rose to $1.44 billion. I was pleased to see that FactSet increased its adjusted operating margin to 33.2% from 31.4% a year ago.

“As we close the first half of the year, we are pleased to have built upon our long track record of continuous and steady growth. Our team capitalized on growing demand for our core solutions with focused execution as we continued to serve as a trusted partner to our clients,” said Phil Snow, FactSet CEO. “Looking ahead to the second half of the year, we will continue to execute against our proven strategy of providing smarter, connected data and technology solutions that make for an open and flexible user experience.”

As of the end of the quarter, FactSet has a client count of 5,405. That’s an increase of 108. The user count increased by 6,854 to 122,063. Annual client retention was greater than 95% of ASV.

FactSet also updated its financial guidance. The company expects revenues to range between $1.41 billion and $1.45 billion. They see adjusted operating margin between 31.5% and 33.5%. Lastly, they see full-year earnings between $9.50 and $9.65 per share. That’s an increase of five cents to the low end. This was a solid report for FDS.

The stock opened up 2% higher but has since given back some of those gains.

Update: Well, I didn’t see that coming. FDS opened higher, lost it all, then rallied back. FDS closed up $12.21 to $245.78, a gain of 5.23%. That’s a new 52-week high.

Posted by on March 26th, 2019 at 10:14 am


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