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FactSet's (FDS) Earnings and Revenues Beat Estimates in Q1
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FactSet Research Systems Inc. (FDS - Free Report) reported better-than-expected first-quarter fiscal 2022 results.
Adjusted earnings per share of $3.25 beat the Zacks Consensus Estimate by 8.7% and increased 12.8% year over year. The bottom line was driven by higher revenues and a decreased tax rate.
FactSet’s revenues of $424.7 million in the quarter surpassed the Zacks Consensus Estimate by 1.3% and increased 9.4% year over year. The uptick was driven by higher sales of analytics, and research and advisory solutions.
The company’s shares have gained 45.8% over the past year, significantly outperforming the 14.7% growth of the industry it belongs to.
Organic revenues increased 9.1% year over year to $423.2 million. Region-wise, organic revenue growth from Americas, EMEA and Asia Pacific was 9%, 9% and 14%, respectively, driven mainly by analytics, content and technology solutions, and workstation growth.
ASV Plus Professional Services
FactSet’s Annual Subscription Value (“ASV”) plus professional services was $1.7 billion, up 9.2% year over year. Buy-side and sell-side ASV growth rates were 8.5% and 13.2%, respectively. Organic ASV plus professional services was $1.7 billion, up 8.9% 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 9.4% from the prior-year quarter’s level. Organic ASV from EMEA and Asia Pacific regions were $453.4 million and 176.2 million, up 7.2% and 13.6% year over year, respectively. FactSet added 306 clients in the reported quarter, driven by an increase in corporate clients, taking the total to 6,759. The annual client retention rate was 92%. At the end of the quarter, total employee count was 10,898, up 2.6% year over year.
Operating Results
Adjusted operating income came in at $142.7 million, up 7.3% from the year-ago quarter’s figure. Adjusted operating margin decreased to 28.9% from 31.2% in the year-ago quarter. Selling, general and administration expenses increased 20% to $94.9 million. Total operating expenses increased 13.1% to $302 million.
Balance Sheet and Cash Flow
FactSet exited the quarter with cash and cash equivalents balance of $673.9 million compared with $681.9 million in the previous quarter. Long-term debt was $574.6 million compared with $574.7 million at the end of the prior quarter. In the reported quarter, the company generated $72.9 million of cash from operating activities, while capital expenditures were $8.6 million. Free cash flow was $64.3 million.
Fiscal 2022 Outlook
FactSet anticipates adjusted EPS in the range of $12-$12.30, the midpoint ($12.15) of which is lower than the current Zacks Consensus Estimate of $12.21.
The company expects revenues between $1.705 billion and $1.720 billion. The current Zacks Consensus Estimate is pegged at $1.72 billion.
Organic ASV plus professional services for fiscal 2022 is projected to increase in the range of $105-$135 million over fiscal 2021.
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 impressive first-quarter fiscal 2022 results. Earnings of $2.78 per share beat the Zacks Consensus Estimate by 6.1% and improved 28% year over year. Revenues of $15 billion beat the consensus mark by 5.4% and increased 27% year over year.
Accenture currently carries a Zacks Rank #2 with the stock gaining 56.9% over the past year.
Paychex (PAYX - Free Report) reported better-than-expected second-quarter fiscal 2022 results. Adjusted earnings of 91 cents per share beat the Zacks Consensus Estimate by 15.2% and increased 25% on a year-over-year basis. Total revenues of $1.11 billion beat the consensus mark by 4.6% and increased 13% year over year.
Paychex carries a Zacks Rank #2 as well with the stock gaining 40.8% over the past year.
ABM Industries’ (ABM - Free Report) fourth-quarter fiscal 2021 adjusted earnings from continuing operations came in at 85 cents per share, beating the consensus mark by 6.3% and improving 23.2% year over year. Total revenues of $1.7 billion beat the consensus estimate by 4.7% and rose14.2% from the year-ago quarter.
ABM Industries also carries a Zacks Rank #3 (Hold) and the stock gained 8.4% over the past year.
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FactSet's (FDS) Earnings and Revenues Beat Estimates in Q1
FactSet Research Systems Inc. (FDS - Free Report) reported better-than-expected first-quarter fiscal 2022 results.
Adjusted earnings per share of $3.25 beat the Zacks Consensus Estimate by 8.7% and increased 12.8% year over year. The bottom line was driven by higher revenues and a decreased tax rate.
FactSet’s revenues of $424.7 million in the quarter surpassed the Zacks Consensus Estimate by 1.3% and increased 9.4% year over year. The uptick was driven by higher sales of analytics, and research and advisory solutions.
The company’s shares have gained 45.8% over the past year, significantly outperforming the 14.7% growth of the industry it belongs to.
FactSet Research Systems Inc. Price
FactSet Research Systems Inc. price | FactSet Research Systems Inc. Quote
FactSet Research Systems Inc. Price
FactSet Research Systems Inc. price | FactSet Research Systems Inc. Quote
Revenues in Detail
Organic revenues increased 9.1% year over year to $423.2 million. Region-wise, organic revenue growth from Americas, EMEA and Asia Pacific was 9%, 9% and 14%, respectively, driven mainly by analytics, content and technology solutions, and workstation growth.
ASV Plus Professional Services
FactSet’s Annual Subscription Value (“ASV”) plus professional services was $1.7 billion, up 9.2% year over year. Buy-side and sell-side ASV growth rates were 8.5% and 13.2%, respectively. Organic ASV plus professional services was $1.7 billion, up 8.9% 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 9.4% from the prior-year quarter’s level. Organic ASV from EMEA and Asia Pacific regions were $453.4 million and 176.2 million, up 7.2% and 13.6% year over year, respectively. FactSet added 306 clients in the reported quarter, driven by an increase in corporate clients, taking the total to 6,759. The annual client retention rate was 92%. At the end of the quarter, total employee count was 10,898, up 2.6% year over year.
Operating Results
Adjusted operating income came in at $142.7 million, up 7.3% from the year-ago quarter’s figure. Adjusted operating margin decreased to 28.9% from 31.2% in the year-ago quarter. Selling, general and administration expenses increased 20% to $94.9 million. Total operating expenses increased 13.1% to $302 million.
Balance Sheet and Cash Flow
FactSet exited the quarter with cash and cash equivalents balance of $673.9 million compared with $681.9 million in the previous quarter. Long-term debt was $574.6 million compared with $574.7 million at the end of the prior quarter. In the reported quarter, the company generated $72.9 million of cash from operating activities, while capital expenditures were $8.6 million. Free cash flow was $64.3 million.
Fiscal 2022 Outlook
FactSet anticipates adjusted EPS in the range of $12-$12.30, the midpoint ($12.15) of which is lower than the current Zacks Consensus Estimate of $12.21.
The company expects revenues between $1.705 billion and $1.720 billion. The current Zacks Consensus Estimate is pegged at $1.72 billion.
Organic ASV plus professional services for fiscal 2022 is projected to increase in the range of $105-$135 million over fiscal 2021.
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 #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Recent Performance of Some Other Business Services Companies
Accenture (ACN - Free Report) reported impressive first-quarter fiscal 2022 results. Earnings of $2.78 per share beat the Zacks Consensus Estimate by 6.1% and improved 28% year over year. Revenues of $15 billion beat the consensus mark by 5.4% and increased 27% year over year.
Accenture currently carries a Zacks Rank #2 with the stock gaining 56.9% over the past year.
Paychex (PAYX - Free Report) reported better-than-expected second-quarter fiscal 2022 results. Adjusted earnings of 91 cents per share beat the Zacks Consensus Estimate by 15.2% and increased 25% on a year-over-year basis. Total revenues of $1.11 billion beat the consensus mark by 4.6% and increased 13% year over year.
Paychex carries a Zacks Rank #2 as well with the stock gaining 40.8% over the past year.
ABM Industries’ (ABM - Free Report) fourth-quarter fiscal 2021 adjusted earnings from continuing operations came in at 85 cents per share, beating the consensus mark by 6.3% and improving 23.2% year over year. Total revenues of $1.7 billion beat the consensus estimate by 4.7% and rose14.2% from the year-ago quarter.
ABM Industries also carries a Zacks Rank #3 (Hold) and the stock gained 8.4% over the past year.