NORWALK - FactSet (NYSE:FDS), a global provider of financial data and analytics, saw its shares rise by 2% following the announcement of its third-quarter results, which surpassed analysts' earnings expectations.
The company reported an adjusted EPS of $4.37, notably higher than the consensus estimate of $3.90. Revenue for the quarter was nearly in line with expectations, coming in at $552.7 million compared to the analyst forecast of $552.78 million.
The company's performance for the third quarter reflected a solid year-over-year growth, with GAAP revenues increasing by 4.3% from the same quarter in 2023. The growth was primarily driven by institutional asset managers, asset owners, partners, and corporates. FactSet's adjusted operating margin also saw an improvement, rising to 39.4% from 36.0% the previous year.
FactSet's CEO, Phil Snow, expressed optimism about the company's direction, citing investments in their platform and the integration of generative AI as key factors in improving client efficiency and reducing ownership costs. CFO Linda Huber highlighted the company's value delivery through increased EPS and adjusted operating margins, despite top-line softness.
Looking ahead, FactSet updated its fiscal 2024 guidance, now expecting organic annual subscription value (ASV) plus professional services growth to be in the range of $85 million to $120 million, representing a 4.8% growth at the midpoint. This is a slight decrease from the previous guidance of $110 million to $150 million.
The company's adjusted operating margin is forecasted to be between 37.0% and 37.5%, with adjusted diluted EPS in the range of $16.00 to $16.40. These projections indicate a positive outlook, with the midpoint of the adjusted EPS guidance range above the consensus estimate.
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