logo
Share SHARE
FONT-SIZE Plus   Neg

FactSet Research Q4 Results Top Estimates

Financial data provider FactSet Research Systems, Inc. (FDS) reported Tuesday a profit for the fourth quarter that increased from last year, reflecting improved margins and revenue growth as the company continued to add subscribers.

Adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also provided first-quarter earnings guidance, below Street view, and revenue forecast in line with estimates.

"I'm pleased with the continued acceleration on both the buy-side and sell-side as we closed this quarter. The just completed fourth quarter was one of our best quarters in the past decade as many of our financial and operating metrics rose across the board," Chairman and CEO Philip Hadley said in a statement.

The Norwalk, Connecticut-based company reported net income of $55.41 million or $1.31 a share for the fourth quarter, higher than $50.96 million or $1.16 a share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $60.79 million or $1.43 per share, compared to $51.83 million or $1.18 per share in the year-ago quarter.

On average, fifteen analysts polled by Thomson Reuters expected the company to report earnings of $1.30 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter increased 9 percent to $238.66 million from $219.33 million in the same quarter last year, and topped thirteen Wall Street analysts' consensus estimate of $236.90 million by a whisker.

U.S. revenues for the quarter grew 6.5 percent organically to $161.2 million, and international revenues were up 7.3 percent organically, to $77.4 million from the prior-year quarter.

Annual Subscription Value or ASV for the fourth quarter increased 7.3 percent organically to $963.6 million from last year. ASV from FactSet's U.S. operations was $651.2 million, and $312.4 million were related to international operations.

ASV represents the forward-looking revenues for the next 12 months from all annual subscription services currently being supplied to clients.

Client count at the end of the fourth quarter totaled 2,743, a net increase of 81 clients during the quarter, the largest quarterly growth since 2005. Annual client retention rate was greater than 95 percent of ASV and 93 percent of clients.

Operating margin for the quarter improved 110 basis points to 33.3 percent from last year. Total operating expenses increased to $159.28 million from $148.80 million last year.

Looking ahead to the first quarter of fiscal 2015, FactSet expects earnings in a range of $1.31 to $1.33 per share, on projected revenues between $240 million and $242 million.

Analysts expect the company to report earnings of $1.34 per share on revenues of $241.43 million for the quarter.

FDS closed Monday's regular trading session at $126.14, down $1.80 on a volume of 0.39 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
An upcoming episode of HBO's hit TV show 'Game of Thrones' has been leaked before its scheduled premiere. It is the second confirmed leak in two weeks to hit season seven. According to the production company HBO, the episode was mistakenly made available on its streaming platforms in Spain, Sweden, Norway, Denmark and Finland. General Motors (GM) announced on Wednesday that it has been approved to voluntarily delist from the Toronto Stock Exchange. The auto giant reassured its shareholders that the TSX delisting will not impact its current listing on the New York Stock Exchange. Subsequent to the bankruptcy filing of German no frills airline Air Berlin (AIBEF.PK), Lufthansa airline is strongly pursuing to acquire Air Berlin. Meanwhile, Ryanair, its Irish rival, accused conspiracy in the deal and said that the acquisition move will breach the existing competition rules in Germany in general and EU in particular.
comments powered by Disqus
Follow RTT