NORWALK, CT – FactSet Research Systems Inc. (NYSE:FDS), a global provider of integrated financial information and analytical applications, announced today that Linda S. Huber has stepped down as Executive Vice President and Chief Financial Officer as of Monday. Huber, who has been with FactSet since 2018, will transition to a finance advisor role and remain with the company until the end of the year.
The company has appointed Helen Shan as the new CFO, effective immediately. Shan, 56, who also serves as FactSet's Executive Vice President and Chief Revenue Officer, will continue in her current role through August 31, 2024. With a wealth of financial leadership experience, Shan had previously held the CFO position from 2018 to 2021 before taking on the role of Chief Revenue Officer.
FactSet emphasized that Huber's departure is not related to any disagreement on accounting practices, financial statements, financial condition, or disclosures. She will receive payments and benefits as outlined in a separation agreement, which complies with the company's Executive Severance Plan. This agreement was signed on Monday and is detailed in an exhibit filed with the Securities and Exchange Commission.
Shan's appointment as CFO does not stem from any prearranged understanding with other company personnel, and she has no familial ties to FactSet's directors or executive officers. Additionally, there are no reported related party transactions between Shan and FactSet that would require disclosure under SEC regulations.
In other recent news, FactSet has seen significant developments. The company announced a reshuffle in its executive team with Helen Shan taking over as CFO, a role she previously held. Linda Huber, the outgoing CFO, is stepping down, and her departure is not due to any disagreement with the company's accounting practices or financial disclosures. Goran Skoko will assume the role of Chief Revenue Officer starting September 1, 2024.
FactSet's third-quarter fiscal 2024 results exceeded expectations with a 5% growth in Annual Subscription Value (ASV) and professional services. The company also expanded its client base to 8,029, adding nine new logos. The future outlook includes revenue projections between $2.18 billion and $2.19 billion, and an adjusted EPS expected to range from $16 to $16.40.
Analysts from UBS and Deutsche Bank (ETR:DBKGn) maintained their neutral stance on FactSet. UBS has set a price target of $455, citing the need for additional evidence of improvement in the broader economic environment. Deutsche Bank, on the other hand, raised its price target to $461, acknowledging potential for margin upside while remaining aware of the challenging economic environment. These recent developments reflect a period of strategic transition and growth for FactSet.
InvestingPro Insights
As FactSet Research Systems Inc. (NYSE:FDS) undergoes a transition in its financial leadership, investors and stakeholders may be interested in the company's current financial health and market performance. According to real-time data from InvestingPro, FactSet boasts a robust market capitalization of $15.86 billion, reflecting its significant presence in the financial information industry. The company's earnings multiple, with a P/E Ratio of 31.05, indicates a premium valuation that investors are willing to pay for its earnings potential. Additionally, FactSet's commitment to shareholder returns is evident, as it has raised its dividend for 25 consecutive years, showcasing a stable financial policy. However, it's worth noting that analysts have revised their earnings expectations downwards for the upcoming period, which may warrant attention.
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FactSet's solid financial performance is further evidenced by its revenue growth, which stands at 6.23% for the last twelve months as of Q3 2024, and a consistent gross profit margin of 53.26%. Such metrics underscore the company's ability to maintain profitability and operational efficiency. For a deeper dive into FactSet's financials and strategic positioning, investors can find a total of 8 additional InvestingPro Tips on the platform.
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