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FactSet Earnings Miss Estimates in Q3, Revenues Increase Y/Y
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Key Takeaways
FDS Q3 EPS of $4.27 missed estimates and fell 2.3% Y/Y, while revenues rose 5.9% to $585.5 million.
Organic ASV plus professional services climbed 4.5% Y/Y to $2.3 billion, led by buy-side demand.
FDS sets the FY25 revenue outlook at $2.305-$2.325B, with the EPS guidance mid-point meeting estimates.
FactSet (FDS - Free Report) has reported the results for the third quarter of fiscal 2025, with earnings missing the Zacks Consensus Estimate but revenues surpassing the same.
FDS’s earnings per share of $4.27 missed the consensus mark by a slight margin and decreased 2.3% from the year-ago quarter. Revenues of $585.5 million beat the Zacks Consensus Estimate by a slight margin and gained 5.9% from the year-ago quarter.
The company’s shares have lost 13.6% in the past six months compared with the 6.5% fall of the industry it belongs to and the 1.3% decline of the Zacks S&P 500 composite.
FactSet Research Systems Inc. Price, Consensus and EPS Surprise
Organic revenues increased 4.4% year over year to $577.2 million. Region-wise, organic revenue growth was 5% for the Americas, 2.3% for the EMEA and 6.4% for the Asia Pacific.
Revenues generated from the Americas segment were $380.5 million, up 6.7% from the year-ago quarter, surpassing our estimate of $374.8 million. Revenues from the EMEA were $145.7 million, an increase of 3.1% from the year-ago quarter. The figure missed our projection of $147.2 million. Revenues from the Asia Pacific were $59.3 million, marking 7.8% growth on a year-over-year basis, outpacing our estimate of $58.4 million.
FDS’s ASV Plus Professional Services
FactSet’s Annual Subscription Value (“ASV”) plus professional services were $2.3 billion. Organic ASV plus professional services were $2.3 billion, up 4.5% from the year-ago quarter. The buy-side and the sell-side organic ASV growth rate was 4%. Nearly 82% of organic ASV was generated by the buy-side and the rest by sell-side firms.
Organic ASV generated from the United States was $1.4 billion, increasing 5% from the year-ago quarter. Organic ASV from the EMEA was $575.2 million, gaining 2.1% year over year. Organic ASV from the Asia Pacific was $235.7 million, up 7.1% on a year-over-year basis.
FactSet added 166 clients in the third quarter of fiscal 2025, driven by hedge fund, corporate, and wealth management clients and clients from the LiquidityBook acquisition, taking the total to 8,811. The annual client retention rate was 91%.
FactSet’s Operating Results
The adjusted operating income was $194.2 million, which decreased 4.1% from the year-ago quarter and beat our estimate of $191.3 million. The adjusted operating margin of 36.8% declined 260 basis points from the year-ago quarter.
FDS’ Balance Sheet & Cash Flow
The company exited the quarter with a cash and cash-equivalent balance of $356.4 million compared with $278.5 million in the second quarter of fiscal 2025. The long-term debt was $1.4 billion compared with $1.5 billion in the preceding quarter.
FDS generated $253.8 million in cash from operating activities. However, its capital expenditure was $25.2 million. The free cash flow utilized was $228.6 million.
FY25 Guidance for FactSet
For fiscal 2025, the company anticipates revenues of $2.305-$2.325 billion. The mid-point of the guided range ($2.315 billion) is slightly higher than the Zacks Consensus Estimate of $2.31 billion.
FDS anticipates earnings per share of $16.8-$17.4. The guided range's mid-point ($17.1) is in line with the consensus estimate. The adjusted operating margin is projected to be 36-37%.
FactSet carries a Zacks Rank #4 (Sell) at present.
FI’s adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Adjusted revenues of $4.8 billion missed the consensus estimate by 1.6% but gained 5.5% on a year-over-year basis.
TRU’s quarterly adjusted earnings (adjusting 20 cents from non-recurring items) of 95 cents per share surpassed the consensus mark by 10.5% and increased 14.5% year over year. Total revenues of $1.1 billion outpaced the consensus mark by 2.5% and increased 7.3% from the year-ago quarter.
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FactSet Earnings Miss Estimates in Q3, Revenues Increase Y/Y
Key Takeaways
FactSet (FDS - Free Report) has reported the results for the third quarter of fiscal 2025, with earnings missing the Zacks Consensus Estimate but revenues surpassing the same.
FDS’s earnings per share of $4.27 missed the consensus mark by a slight margin and decreased 2.3% from the year-ago quarter. Revenues of $585.5 million beat the Zacks Consensus Estimate by a slight margin and gained 5.9% from the year-ago quarter.
The company’s shares have lost 13.6% in the past six months compared with the 6.5% fall of the industry it belongs to and the 1.3% decline of the Zacks S&P 500 composite.
FactSet Research Systems Inc. Price, Consensus and EPS Surprise
FactSet Research Systems Inc. price-consensus-eps-surprise-chart | FactSet Research Systems Inc. Quote
FactSet’s Revenues in Detail
Organic revenues increased 4.4% year over year to $577.2 million. Region-wise, organic revenue growth was 5% for the Americas, 2.3% for the EMEA and 6.4% for the Asia Pacific.
Revenues generated from the Americas segment were $380.5 million, up 6.7% from the year-ago quarter, surpassing our estimate of $374.8 million. Revenues from the EMEA were $145.7 million, an increase of 3.1% from the year-ago quarter. The figure missed our projection of $147.2 million. Revenues from the Asia Pacific were $59.3 million, marking 7.8% growth on a year-over-year basis, outpacing our estimate of $58.4 million.
FDS’s ASV Plus Professional Services
FactSet’s Annual Subscription Value (“ASV”) plus professional services were $2.3 billion. Organic ASV plus professional services were $2.3 billion, up 4.5% from the year-ago quarter. The buy-side and the sell-side organic ASV growth rate was 4%. Nearly 82% of organic ASV was generated by the buy-side and the rest by sell-side firms.
Organic ASV generated from the United States was $1.4 billion, increasing 5% from the year-ago quarter. Organic ASV from the EMEA was $575.2 million, gaining 2.1% year over year. Organic ASV from the Asia Pacific was $235.7 million, up 7.1% on a year-over-year basis.
FactSet added 166 clients in the third quarter of fiscal 2025, driven by hedge fund, corporate, and wealth management clients and clients from the LiquidityBook acquisition, taking the total to 8,811. The annual client retention rate was 91%.
FactSet’s Operating Results
The adjusted operating income was $194.2 million, which decreased 4.1% from the year-ago quarter and beat our estimate of $191.3 million. The adjusted operating margin of 36.8% declined 260 basis points from the year-ago quarter.
FDS’ Balance Sheet & Cash Flow
The company exited the quarter with a cash and cash-equivalent balance of $356.4 million compared with $278.5 million in the second quarter of fiscal 2025. The long-term debt was $1.4 billion compared with $1.5 billion in the preceding quarter.
FDS generated $253.8 million in cash from operating activities. However, its capital expenditure was $25.2 million. The free cash flow utilized was $228.6 million.
FY25 Guidance for FactSet
For fiscal 2025, the company anticipates revenues of $2.305-$2.325 billion. The mid-point of the guided range ($2.315 billion) is slightly higher than the Zacks Consensus Estimate of $2.31 billion.
FDS anticipates earnings per share of $16.8-$17.4. The guided range's mid-point ($17.1) is in line with the consensus estimate. The adjusted operating margin is projected to be 36-37%.
FactSet carries a Zacks Rank #4 (Sell) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Fiserv, Inc. (FI - Free Report) registered mixed first-quarter 2025 results.
FI’s adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Adjusted revenues of $4.8 billion missed the consensus estimate by 1.6% but gained 5.5% on a year-over-year basis.
TransUnion (TRU - Free Report) reported impressive first-quarter 2025 results.
TRU’s quarterly adjusted earnings (adjusting 20 cents from non-recurring items) of 95 cents per share surpassed the consensus mark by 10.5% and increased 14.5% year over year. Total revenues of $1.1 billion outpaced the consensus mark by 2.5% and increased 7.3% from the year-ago quarter.