We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
FactSet (FDS) Beats Earnings and Revenue Estimates in Q4
Read MoreHide Full Article
FactSet Research Systems Inc. (FDS - Free Report) reported impressive results for fourth-quarter fiscal 2019, wherein it topped the Zacks Consensus Estimate on both counts.
The company reported adjusted earnings per share of $2.61, which surpassed the Zacks Consensus Estimate by 14 cents. The figure increased 18.6% on a year-over-year basis driven by strong operating performance.
We observe that shares of FactSet have gained 21.9% year to date, significantly underperforming the 36.6% rally of the industry it belongs to.
Revenues in Detail
FactSet’s revenues of $364.3 million increased 5.3% from the year-ago quarter and exceeded the Zacks Consensus Estimate by around $2 million. The uptick was driven by higher sales of analytics, content and technology solutions (CTS) as well as wealth management solutions. Organic revenues increased 5.3% year over year to $365.6 million.
Region-wise, U.S. revenues increased to $222.1 million from $213.9 million in the year-ago quarter. International revenues were $142.2 million compared with $131.9 million in the year-ago quarter.
FactSet’s Annual Subscription Value (ASV) plus professional services was $1.48 billion at the end of the quarter, up 5% year over year. Organically, it increased 5.1% year over year.
Buy-side and sell-side ASV growth rates were 4.8% and 6.3%, respectively. Nearly 84% of organic ASV was generated by buy-side clients. The rest were derived from sell-side firms performing functions like mergers and acquisitions advisory work, equity research and capital markets services.
ASV generated from the United States was $909.7 million, up 4.7% from the prior-year quarter’s level. Internationally, ASV was $548.3 million, up 4.6% year over year.
FactSet added 119 clients in the reported quarter, taking the total number to 5,574. Annual client retention was 89%. At the end of the quarter, total employee count was 9,681, up 1.1% year over year.
Operating Results
Adjusted operating income came in at $123.9 million, up 14% from the year-ago quarter’s figure. Adjusted operating margin increased 260 basis points (bps) to 33.9%.
Selling, general and administration expenses increased 3.5% to $85 million. Total operating expenses decreased 1.5% to $252.7 million.
Balance Sheet and Cash Flow
FactSet exited the fiscal fourth quarter with cash and cash equivalents of $359.8 million compared with $324 million in the previous quarter. Long-term debt at the end of the quarter was $574.2 million compared with $574.1 million in the prior quarter.
In the quarter, the company generated $121.8 million of cash from operating activities and capital expenditure was $26.5 million. Free cash flow was $95.3 million.
FactSet repurchased 221,292 shares for $62.1 million during the quarter. A quarterly dividend of $27.3 million was paid out on Sep 19.
Fiscal 2020 Outlook
The company anticipates adjusted EPS in the range of $9.85 and $10.15. Midpoint ($10) of the updated range is lower than the Zacks Consensus Estimate of $10.5. The company expects revenues between $1.49 billion and $1.50 billion. The Zacks Consensus Estimate is pegged at $1.50 billion.
Organic ASV plus professional services for fiscal 2020 is projected to increase in the range of $65-$85 million. Adjusted operating margin is projected in the range of 28.5%-29.5%. The annual effective tax rate is expected between 17% and 1.5%.
Zacks Rank & Stocks to Consider
FactSet currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Zacks Business Services sector are Fiserv , Huron Consulting (HURN - Free Report) and Charles River Associates (CRAI - Free Report) . While Fiserv and Huron sport a Zacks Rank #1 (Strong Buy), Charles River carries a Zacks Rank #2 (Buy).
Long-term earnings (three to five years) growth rate for Huron Consulting, Charles River Associates and Fiserv is estimated 13.5%, 13% and 12%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
Image: Bigstock
FactSet (FDS) Beats Earnings and Revenue Estimates in Q4
FactSet Research Systems Inc. (FDS - Free Report) reported impressive results for fourth-quarter fiscal 2019, wherein it topped the Zacks Consensus Estimate on both counts.
The company reported adjusted earnings per share of $2.61, which surpassed the Zacks Consensus Estimate by 14 cents. The figure increased 18.6% on a year-over-year basis driven by strong operating performance.
We observe that shares of FactSet have gained 21.9% year to date, significantly underperforming the 36.6% rally of the industry it belongs to.
Revenues in Detail
FactSet’s revenues of $364.3 million increased 5.3% from the year-ago quarter and exceeded the Zacks Consensus Estimate by around $2 million. The uptick was driven by higher sales of analytics, content and technology solutions (CTS) as well as wealth management solutions. Organic revenues increased 5.3% year over year to $365.6 million.
Region-wise, U.S. revenues increased to $222.1 million from $213.9 million in the year-ago quarter. International revenues were $142.2 million compared with $131.9 million in the year-ago quarter.
FactSet Research Systems Inc. Revenue (TTM)
FactSet Research Systems Inc. revenue-ttm | FactSet Research Systems Inc. Quote
ASV Plus Professional Services
FactSet’s Annual Subscription Value (ASV) plus professional services was $1.48 billion at the end of the quarter, up 5% year over year. Organically, it increased 5.1% year over year.
Buy-side and sell-side ASV growth rates were 4.8% and 6.3%, respectively. Nearly 84% of organic ASV was generated by buy-side clients. The rest were derived from sell-side firms performing functions like mergers and acquisitions advisory work, equity research and capital markets services.
ASV generated from the United States was $909.7 million, up 4.7% from the prior-year quarter’s level. Internationally, ASV was $548.3 million, up 4.6% year over year.
FactSet added 119 clients in the reported quarter, taking the total number to 5,574. Annual client retention was 89%. At the end of the quarter, total employee count was 9,681, up 1.1% year over year.
Operating Results
Adjusted operating income came in at $123.9 million, up 14% from the year-ago quarter’s figure. Adjusted operating margin increased 260 basis points (bps) to 33.9%.
Selling, general and administration expenses increased 3.5% to $85 million. Total operating expenses decreased 1.5% to $252.7 million.
Balance Sheet and Cash Flow
FactSet exited the fiscal fourth quarter with cash and cash equivalents of $359.8 million compared with $324 million in the previous quarter. Long-term debt at the end of the quarter was $574.2 million compared with $574.1 million in the prior quarter.
In the quarter, the company generated $121.8 million of cash from operating activities and capital expenditure was $26.5 million. Free cash flow was $95.3 million.
FactSet repurchased 221,292 shares for $62.1 million during the quarter. A quarterly dividend of $27.3 million was paid out on Sep 19.
Fiscal 2020 Outlook
The company anticipates adjusted EPS in the range of $9.85 and $10.15. Midpoint ($10) of the updated range is lower than the Zacks Consensus Estimate of $10.5. The company expects revenues between $1.49 billion and $1.50 billion. The Zacks Consensus Estimate is pegged at $1.50 billion.
Organic ASV plus professional services for fiscal 2020 is projected to increase in the range of $65-$85 million. Adjusted operating margin is projected in the range of 28.5%-29.5%. The annual effective tax rate is expected between 17% and 1.5%.
Zacks Rank & Stocks to Consider
FactSet currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Zacks Business Services sector are Fiserv , Huron Consulting (HURN - Free Report) and Charles River Associates (CRAI - Free Report) . While Fiserv and Huron sport a Zacks Rank #1 (Strong Buy), Charles River carries a Zacks Rank #2 (Buy).
Long-term earnings (three to five years) growth rate for Huron Consulting, Charles River Associates and Fiserv is estimated 13.5%, 13% and 12%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>