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FactSet (FDS) Stock Up 13.8% in a Year: What's Behind It?

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Shares of FactSet Research Systems Inc. (FDS - Free Report) have surged 13.8% over the past year against 22.3% decline of the industry it belongs to.

Zacks Investment Research
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Let’s delve deeper into factors that have contributed to the company’s price performance:

Dividend Hike

FactSet’s board of directors has recently hiked its quarterly dividend by 8.5% from 82 cents per share to 89 cents per share, reflecting its 23rd consecutive year. The increased dividend will be paid out on Jun 16, 2022, to shareholders of record as of May 31, 2022. 

FactSet puts consistent efforts into rewarding its shareholders in the form of share repurchases and dividend payments. In fiscal years 2021, 2020 and 2019, the company repurchased shares worth $264.7 million, $199.6 million and $220.4 million, respectively. The company also paid dividends worth $117.9 million, $110.4 million, $100.1 million in fiscal years 2021, 2020 and 2019, respectively. Such moves indicate the company’s commitment to create value for shareholders and underline its confidence in its business. These initiatives not only instill investors’ confidence but also positively impact the company's earnings.

Consecutive Earnings & Revenue Beat

FactSet reported better-than-expected earnings and revenue performance in the last three quarters. Higher organic revenues, increase in annual subscription value, robust global network, and higher sales of analytics, research and advisory solutions boost the company’s top-line growth. The bottom line continues to benefit from higher revenues. Acquisitions help FactSet broaden its product suite, thereby allowing it to deliver innovative products and helping it evolve as a global financial database company. High client retention acts as another tailwind.

Raised 2022 Guidance

For fiscal 2022, total revenues are now expected between $1.80 billion and $1.83 billion compared with the prior guidance of $1.705-$1.72. billion. Adjusted EPS is now expected between $12.75 and $13.15 compared with the prior guidance of $12.00-$12.30. The adjusted operating margin is now expected between 33% and 34% compared with the prior guidance of 32.5%-33.5%.

Zacks Rank and Other Stocks to Consider

FactSet currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other better-ranked stocks in the broader Business Services sector that investors can consider are Cross Country Healthcare (CCRN - Free Report) , Gartner (IT - Free Report) and Clean Harbors (CLH - Free Report) . Cross Country Healthcare and Gartner sport a Zacks Rank #1, Clean Harbors carries a Zack Rank #2.

Cross Country Healthcare has an expected earnings growth rate of 49.4% for the current year. It has a trailing four-quarter earnings surprise of 29.2%, on average.

Cross Country Healthcare has a long-term earnings growth of 6.9%.

Gartner’s shares have surged 11.8% in the past year. The company delivered a trailing four-quarter earnings surprise of 24.2%, on average.

The Zacks Consensus Estimate for Gartner's earnings in the current year has moved up 9.8% in the past 90 days.

Clean Harbors has an expected earnings growth rate of 26.2% for the current year. The company has a trailing four-quarter earnings surprise of 35.8%, on average.

The Zacks Consensus Estimate for Clean Harbors’ earnings in the current year has moved up 30% in the past 90 days.