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FactSet's (FDS) Earnings and Revenues Beat Estimates in Q4
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FactSet Research Systems Inc. (FDS - Free Report) reported better-than-expected fourth-quarter fiscal 2021 results.
Adjusted earnings per share of $2.88 beat the Zacks Consensus Estimate by 6.3% and stayed flat year over year. The bottom line was driven by higher revenues, offset by increased operating expenses and tax rate.
FactSet’s revenues of $411.9 million in the quarter surpassed the Zacks Consensus Estimate by 1.7% and increased 7.4% year over year. The uptick was driven by higher sales of analytics, content, and technology solutions and research.
The company’s shares have gained 14.7% over the past year, underperforming the 21.8% growth of the industry it belongs to.
Revenues in Detail
Organic revenues increased 6.7% year over year to $410.1 million. Region-wise, U.S. revenues increased to $261.9 million from $245.4 million in the year-ago quarter. EMEA revenues were $109.6 million compared with $101.8 million in the year-ago quarter. Asia Pacific revenues were $40.4 million compared with $36.4 million in the year-ago quarter.
ASV Plus Professional Services
FactSet’s Annual Subscription Value (“ASV”) plus professional services was $1.7 billion, up 7.9%. Buy-side and sell-side ASV growth rates were 6.5% and 12%, respectively. Organic ASV plus professional services was $1.7 billion, up 7.2% from the prior year quarter. Nearly 83% of organic ASV was generated by buy-side and the rest by sell-side firms.
Organic ASV generated from the United States was $1 billion, up 7.4% from the prior-year quarter’s levels. Organic ASV from EMEA and Asia Pacific regions were $451.3 million and 174.6 million, up 5.6% and 12.5% year over year, respectively. FactSet added 281 clients in the reported quarter, driven by an increase in corporate and wealth management clients, and third-party data providers, taking the total to 6,453. Annual client retention rate was 91%. At the end of the quarter, total employee count was 10,892, up 3.9% year over year.
FactSet Research Systems Inc. Price, Consensus and EPS Surprise
Adjusted operating income came in at $130.4 million, up 2.4% from the year-ago quarter’s figure. Adjusted operating margin decreased to 31.6% from 33.2% in the year-ago quarter. Selling, general and administration expenses decreased 6.2% to $95.2 million. Total operating expenses increased 2.7% to $292.7 million.
Balance Sheet and Cash Flow
FactSet exited the quarter with cash and cash equivalents of $681.9 million compared with $602.7 million in the previous quarter. Long-term debt was $574.7 million compared with $574 million at the end of the prior quarter. In the quarter, the company generated $185 million of cash from operating activities, while capital expenditures were $13.8 million. Free cash flow was $171.2 million.
Fiscal 2022 Outlook
FactSet anticipates adjusted EPS in the range of $12-$12.30, higher than the current Zacks Consensus Estimate of $11.78.
The company expects revenues between $1.705 billion and $1.720 billion
Organic ASV plus professional services for fiscal 2022 is projected to increase in the range of $105-$135 million over fiscal 2020.
Adjusted operating margin is projected to be of 32.5-33.5%. The annual effective tax rate is expected to be between 14.5% and 15.5%.
Recent Performance of Some Other Business Services Companies
Accenture (ACN - Free Report) reported mixed fourth-quarter fiscal 2021 results. Earnings of $2.2 per share beat the Zacks Consensus Estimate by 0.5% and improved 29.4 % year over year. Revenues of $13.4 billion beat the consensus mark by 0.4% and increased 24% year over year.
ABM Industries’ (ABM - Free Report) third-quarter fiscal 2021 adjusted earnings from continuing operations came in at 90 cents per share, beating the consensus mark by 12.5% and improving 20% year over year. Total revenues of $1.5 billion beat the consensus estimate by 0.7% and rose 10.7% from the year-ago quarter.
IHS Markit Ltd. reported third-quarter fiscal 2021 adjusted earnings per share of 85 cents that beat the consensus mark by 2.4% and increased 10% on a year-over-year basis. Total revenues came in at $1.2 billion, surpassing the consensus mark by 1.1% and increasing 10.3% from the year-ago quarter.
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FactSet's (FDS) Earnings and Revenues Beat Estimates in Q4
FactSet Research Systems Inc. (FDS - Free Report) reported better-than-expected fourth-quarter fiscal 2021 results.
Adjusted earnings per share of $2.88 beat the Zacks Consensus Estimate by 6.3% and stayed flat year over year. The bottom line was driven by higher revenues, offset by increased operating expenses and tax rate.
FactSet’s revenues of $411.9 million in the quarter surpassed the Zacks Consensus Estimate by 1.7% and increased 7.4% year over year. The uptick was driven by higher sales of analytics, content, and technology solutions and research.
The company’s shares have gained 14.7% over the past year, underperforming the 21.8% growth of the industry it belongs to.
Revenues in Detail
Organic revenues increased 6.7% year over year to $410.1 million. Region-wise, U.S. revenues increased to $261.9 million from $245.4 million in the year-ago quarter. EMEA revenues were $109.6 million compared with $101.8 million in the year-ago quarter. Asia Pacific revenues were $40.4 million compared with $36.4 million in the year-ago quarter.
ASV Plus Professional Services
FactSet’s Annual Subscription Value (“ASV”) plus professional services was $1.7 billion, up 7.9%. Buy-side and sell-side ASV growth rates were 6.5% and 12%, respectively. Organic ASV plus professional services was $1.7 billion, up 7.2% from the prior year quarter. Nearly 83% of organic ASV was generated by buy-side and the rest by sell-side firms.
Organic ASV generated from the United States was $1 billion, up 7.4% from the prior-year quarter’s levels. Organic ASV from EMEA and Asia Pacific regions were $451.3 million and 174.6 million, up 5.6% and 12.5% year over year, respectively. FactSet added 281 clients in the reported quarter, driven by an increase in corporate and wealth management clients, and third-party data providers, taking the total to 6,453. Annual client retention rate was 91%. At the end of the quarter, total employee count was 10,892, up 3.9% year over year.
FactSet Research Systems Inc. Price, Consensus and EPS Surprise
FactSet Research Systems Inc. price-consensus-eps-surprise-chart | FactSet Research Systems Inc. Quote
Operating Results
Adjusted operating income came in at $130.4 million, up 2.4% from the year-ago quarter’s figure. Adjusted operating margin decreased to 31.6% from 33.2% in the year-ago quarter. Selling, general and administration expenses decreased 6.2% to $95.2 million. Total operating expenses increased 2.7% to $292.7 million.
Balance Sheet and Cash Flow
FactSet exited the quarter with cash and cash equivalents of $681.9 million compared with $602.7 million in the previous quarter. Long-term debt was $574.7 million compared with $574 million at the end of the prior quarter. In the quarter, the company generated $185 million of cash from operating activities, while capital expenditures were $13.8 million. Free cash flow was $171.2 million.
Fiscal 2022 Outlook
FactSet anticipates adjusted EPS in the range of $12-$12.30, higher than the current Zacks Consensus Estimate of $11.78.
The company expects revenues between $1.705 billion and $1.720 billion
Organic ASV plus professional services for fiscal 2022 is projected to increase in the range of $105-$135 million over fiscal 2020.
Adjusted operating margin is projected to be of 32.5-33.5%. The annual effective tax rate is expected to be between 14.5% and 15.5%.
FactSet currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Some Other Business Services Companies
Accenture (ACN - Free Report) reported mixed fourth-quarter fiscal 2021 results. Earnings of $2.2 per share beat the Zacks Consensus Estimate by 0.5% and improved 29.4 % year over year. Revenues of $13.4 billion beat the consensus mark by 0.4% and increased 24% year over year.
ABM Industries’ (ABM - Free Report) third-quarter fiscal 2021 adjusted earnings from continuing operations came in at 90 cents per share, beating the consensus mark by 12.5% and improving 20% year over year. Total revenues of $1.5 billion beat the consensus estimate by 0.7% and rose 10.7% from the year-ago quarter.
IHS Markit Ltd. reported third-quarter fiscal 2021 adjusted earnings per share of 85 cents that beat the consensus mark by 2.4% and increased 10% on a year-over-year basis. Total revenues came in at $1.2 billion, surpassing the consensus mark by 1.1% and increasing 10.3% from the year-ago quarter.