FactSet Q1 Adj. Profit Tops Estimates, Organic Revenue Up 8.3%; Reaffirms Outlook

FactSet (FDS) posted a growth of 22.8% in its first-quarter adjusted EPS primarily due to higher revenue and margin expansion year-over-year. Adjusted operating margin improved to 38.3% compared with 33.6% in the prior year period, primarily due to higher revenue, led by the CGS acquisition, lower third-party content costs, and reduced facilities expenses, partially offset by higher technology expense. Organic revenue grew 8.3%, for the quarter. Looking forward, the company reaffirmed its outlook for fiscal 2023.

Annual Subscription Value plus professional services was $2.0 billion at November 30, 2022, compared with $1.7 billion at November 30, 2021. Organic ASV plus professional services was $1.8 billion at November 30, 2022, up $149.5 million from the prior year at a growth rate of 8.8%.

Adjusted EPS increased 22.8% to $3.99 compared with $3.25 for the prior year. On average, 14 analysts polled by Thomson Reuters expected the company to report profit per share of $3.61, for the quarter. Analysts' estimates typically exclude special items.

GAAP EPS was $3.52, up 26.2% from the prior year. Net income increased to $136.80 million from $107.65 million.

GAAP revenues were $504.8 million, up 18.9% from last year. Analysts on average had estimated $510.17 million in revenue.

For fiscal 2023, the company continues to project: adjusted EPS to be in the range of $14.50 to $14.90; and revenues to be in the range of $2.10 billion to $2.115 billion.

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