FactSet Earned $2.62 per Share

FactSet (FDS) released a very good earnings report today. For its fiscal Q3, the company made $2.62 per share. That beat estimates by 26 cents. Quarterly revenues rose 7.2% to $364.5 million. Organic revenue grew 7.3% to $366.3 million. Operating margin increased to 34%.

A key stat for FDS is Annual Subscription Value or ASV. Last quarter, that rose to $1.45 billion. The organic growth rate, which excludes the effects of acquisitions, dispositions, and foreign currency, was 5.6%.

Adjusted diluted EPS rose 20.2% to $2.62 compared with $2.18 in the prior period driven primarily by stronger operating results. Also, the Board of Directors approved a $210 million increase to the existing share repurchase program.

“FactSet’s ability to perform well this year amid sector and industry headwinds serves as a proof point that our long-term strategy is working,” said Phil Snow, FactSet CEO. “We are encouraged that our smarter, connected data and technology solutions continue to resonate with clients as we help them drive efficiency and increase value in an ever-changing environment.”

Here are their expectations for 2019:

Organic ASV plus professional services is now expected to increase in the range of $70 million and $75 million over fiscal 2018.

GAAP revenue is now expected to be in the range of $1.42 billion – $1.44 billion.

GAAP operating margin is now expected to be in the range of 30.0% – 30.5%.

Adjusted operating margin is now expected to be in the range of 32.5% – 33.0%.

FactSet’s annual effective tax rate is now expected to be in the range of 16% – 16.5%.

GAAP diluted EPS is now expected to be in the range of $8.90 – $9.00. Adjusted diluted EPS is now expected to be in the range of $9.80 – $9.90. The mid-point of this guidance represents a 15% growth over the prior year.

FDS is up 1.7% in pre-market trading. As of yesterday’s close, it’s up 46.57% for us this year.

Posted by on June 25th, 2019 at 7:19 am


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