NORWALK, Conn. - FactSet, a global provider of financial data and analytics, announced a reshuffle in its executive team with Helen Shan taking over as Chief Financial Officer (CFO), effective immediately.
Shan, who has extensive financial leadership within the company, returns to a role she previously held from 2018 to 2021. She replaces Linda Huber, who is stepping down from her position.
Shan's prior tenure as CFO saw her spearheading a financial strategy that included significant investments in digital and content capabilities, which contributed to FactSet's solution expansion and revenue acceleration. As Chief Revenue Officer, she was credited with driving over $300 million of organic growth in annual subscription value.
CEO Philip Snow expressed confidence in Shan's ability to leverage her broad experience in FactSet’s next phase of growth, citing her strategic and financial expertise as critical for delivering shareholder value. Snow also acknowledged Shan's role in the company's investment plan and market share growth over various market cycles.
Goran Skoko, currently Executive Vice President, Managing Director of EMEA and Asia Pacific, and Head of Dealmakers and Wealth, will assume the Chief Revenue Officer role starting September 1, 2024.
Skoko's two decades of experience at FactSet, particularly in sales, product, and engineering, are expected to steer the company's sales organization towards continued market expansion and client relationship development.
The announcement also included a tribute to Linda Huber's contributions during her three-year tenure, highlighting her role in establishing FactSet's first public bond deal and advancing capital allocation and expense management disciplines. Huber's departure is not related to any disagreement on the company's accounting practices or financial disclosures.
FactSet took the opportunity to reaffirm its full-year fiscal 2024 guidance, maintaining the outlook provided on June 21, 2024. This statement comes as a reassurance to investors and the market, indicating stability and continuity in the company's financial expectations.
The company emphasized that the changes in leadership are part of a strategic transition and are expected to be seamless due to the executives' deep expertise and established partnership within FactSet.
This reshuffling of executive roles is based on a press release statement from FactSet.
In other recent news, FactSet Research Systems has demonstrated resilience in its recent financial performance. The company's third-quarter fiscal 2024 results exceeded expectations, with a 5% growth in Annual Subscription Value (ASV) and professional services.
Adjusted diluted earnings per share (EPS) increased to $4.37, and the company achieved an adjusted operating margin of 39.4%. FactSet also managed to expand its client base to 8,029, adding nine new logos.
The company's 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. Despite challenges such as clients' budget constraints and prolonged sales cycles, FactSet remains focused on strategic investments.
Analysts from UBS and Deutsche Bank (ETR:DBKGn) have maintained their neutral stance on FactSet, with price targets of $455 and $461, respectively. UBS notes the need for additional evidence of improvement in the broader economic environment before adopting a more bullish stance. Meanwhile, Deutsche Bank acknowledges the potential for margin upside while remaining aware of the broader challenging economic environment.
InvestingPro Insights
Following the executive reshuffle at FactSet, the company's financial health and market performance remain focal points for investors. FactSet's market capitalization currently stands at a robust $16.33 billion, reflecting the company's significant presence in the financial data sector. With a Price/Earnings (P/E) ratio of 31.64, the company is trading at a high earnings multiple, which may suggest investor confidence in its future earnings potential. This is further substantiated by the company's track record of consistent dividend growth, with dividends having been raised for 25 consecutive years, a testament to FactSet's financial stability and commitment to returning value to shareholders.
On the profitability front, FactSet has been profitable over the last twelve months, and analysts predict it will continue to be profitable this year. This aligns with CEO Philip Snow's confidence in Helen Shan's ability to drive shareholder value and the company's continued growth. However, it's worth noting that 12 analysts have revised their earnings estimates downwards for the upcoming period, which could be an indicator of potential challenges ahead that investors might want to monitor.
For those looking to delve deeper into FactSet's performance and prospects, there are additional InvestingPro Tips available, which can provide further insights into the company's valuation metrics, such as its high Price/Book multiple and near-term earnings growth relation to its P/E ratio. Subscribers can access these valuable tips and more by visiting InvestingPro and using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, offering a comprehensive toolkit for informed investment decisions.
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