FactSet(FDS)

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Here's Why Investors Must Hold FactSet Stock in Their Portfolios
ZACKS· 2025-04-02 14:55
Core Insights - FactSet (FDS) shares have increased by 4.9%, underperforming the industry rally of 14.3% and the S&P 500's rise of 8.1% [1] - Revenue growth is projected at 5% for 2025 and 6% for 2026, with earnings expected to rise by 4% in 2025 and 7.7% in 2026 [1] Group 1: Financial Performance - In fiscal 2024, organic revenues grew by 5.7% year over year, reaching $2.2 billion, with a forecasted increase of 4.9% for fiscal 2025 [2] - The Annual Subscription Value (ASV) reached $2.3 billion, marking a 4.8% year-over-year increase, with U.S. revenues at $1.5 billion, up 6.1% [3] - Share repurchases totaled $235.2 million in fiscal 2024, with dividends paid amounting to $150.7 million, reflecting the company's commitment to shareholder value [4] Group 2: Strategic Partnerships and Innovations - FactSet partnered with Irwin to integrate investor relations CRM with its Workstation, enhancing solutions for IR professionals [5] - Collaboration with LightPoint provides hedge funds with an integrated solution to improve trade workflows [5] - Partnership with Coin Metrics allows financial professionals to monitor digital assets and evaluate portfolios [5] Group 3: Liquidity and Financial Health - The current ratio for FactSet in Q2 fiscal 2025 was 1.47, significantly higher than the industry average of 0.8, indicating strong liquidity [6]
FDS Stock Barely Moves After Posting Q2 Earnings Beat, Revenue Rise
ZACKS· 2025-03-25 18:00
Core Viewpoint - FactSet (FDS) reported second-quarter fiscal 2025 results with earnings exceeding estimates while revenues met expectations [1][2] Financial Performance - Earnings per share (EPS) of $4.28 beat the consensus estimate by 2.2% and increased 1.4% year-over-year [2] - Revenues totaled $570.7 million, meeting the Zacks Consensus Estimate and reflecting a 4.5% year-over-year growth [2] - Adjusted operating income was $212.7 million, up 1.6% from the previous year, surpassing estimates [8] Revenue Breakdown - Organic revenues increased 4% year-over-year to $568 million, with regional growth rates of 4% in the Americas, 3.1% in EMEA, and 6.8% in Asia Pacific [4] - Revenues from the Americas segment were $369.7 million, up 4.8% year-over-year [5] - EMEA revenues were $143.4 million, a 3% increase, while Asia Pacific revenues reached $57.6 million, marking a 6.5% growth [5] Subscription Value and Client Metrics - Annual Subscription Value (ASV) plus professional services reached $2.3 billion, up 4.1% year-over-year [6] - The company added 396 clients in the second quarter, bringing the total to 8,645, with a client retention rate of 91% [7] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the quarter were $278.5 million, down from $289.2 million in the previous quarter [9] - Long-term debt increased to $1.5 billion from $1.3 billion [9] - Generated $174 million in cash from operating activities, with capital expenditures of $23.7 million [10] Guidance for Fiscal 2025 - Updated revenue guidance for fiscal 2025 is set at $2.305-$2.325 billion, slightly above the previous range [11] - EPS guidance is between $16.8 and $17.4, with the midpoint aligning with consensus estimates [11] - Projected adjusted operating margin is between 36% and 37% [11]
FactSet Research Systems: Reiterate Buy As Bull Case Gets Clearer
Seeking Alpha· 2025-03-23 15:35
Group 1 - The article discusses a positive outlook on FactSet Research Systems (NYSE: FDS), highlighting expectations for strong EPS growth in the coming years [1] - The author emphasizes a fundamentals-based approach to value investing, arguing against the misconception that low multiple stocks are inherently cheap [1] - The focus is on identifying companies with long-term durability, steady growth, and strong balance sheets, while acknowledging the risks associated with overpaying for successful companies [1] Group 2 - The article does not contain any disclosures related to stock positions or business relationships with the companies mentioned [2] - It clarifies that past performance is not indicative of future results and that no specific investment advice is provided [3]
FactSet: Not Yet A Buy; At $400 Per Share It Might Be
Seeking Alpha· 2025-03-21 14:24
Company Overview - FactSet (NYSE: FDS) is recognized for its solid business model based on recurring revenues, which contributes to its stability and reliability in the financial services sector [1]. Business Model - The company operates a digital financial platform utilized by thousands of professionals, indicating a strong user base and demand for its services [1]. Investment Perspective - The focus on fundamental analysis rather than technical trading suggests a long-term investment strategy, which aligns with the company's recurring revenue model [1].
FactSet(FDS) - 2025 Q2 - Earnings Call Transcript
2025-03-20 16:02
Financial Data and Key Metrics Changes - In Q2 2025, organic ASV grew by 4.1% year-over-year, with an adjusted operating margin of 37.3% and adjusted diluted EPS of $4.28 [9][10][43] - GAAP revenues increased by 4.5% year-over-year to $571 million, while organic revenues grew by 4% to $568 million [35][36] - Free cash flow was $150 million in Q2, up 23% over the same period last year [44] Business Line Data and Key Metrics Changes - Wealth management saw double-digit growth, with significant wins including a contract with UBS [15][16] - The banking segment faced challenges, but renewal activity increased, with over a dozen large banking renewals signed [18][20] - PEVC experienced accelerated double-digit growth, while asset management faced headwinds due to cost rationalization [21][22] Market Data and Key Metrics Changes - In the Americas, organic ASV grew by 4%, while EMEA saw 3% growth and Asia-Pacific maintained 7% growth [12][13][14] - The wealth segment is gaining market share, particularly in the Americas, with expansion opportunities in Europe and Asia [16][17][118] Company Strategy and Development Direction - The company is focused on driving top-line growth, with a strong sales pipeline and product-led innovation [25][26] - Recent acquisitions, including LiquidityBook, are expected to enhance service offerings and cross-sell opportunities [23][27][111] - The strategy includes expanding into new regions and adding services to existing clients, particularly in wealth management [119] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a challenging market environment but expresses confidence in the sales pipeline and product innovation [10][11] - There is optimism about growth acceleration in the second half of the fiscal year, with reaffirmed guidance for organic ASV growth [47][50] - The company is well-positioned to capitalize on Gen AI products and improve client engagement [31][50] Other Important Information - The company repurchased nearly 137,000 shares for approximately $64 million during the quarter [45] - The effective tax rate for Q2 was 15.9%, a decrease from the previous year [42] - The company is committed to returning capital to shareholders while maintaining investment-grade ratings [46][47] Q&A Session Summary Question: Can you provide more details on the traction with Gen AI products? - Management reported strong momentum with PitchCreator and other Gen AI products, with positive client reception and active trials [56][62] Question: Is the environment improving or is the company performing better in a challenging market? - Management believes they have de-risked major challenges and are seeing strength across all markets, with a positive outlook for the second half [68][71] Question: How does banking factor into the guidance range? - Management indicated that they are not relying on banking for their numbers, with conservative estimates baked into the guidance [76][80] Question: Is the UBS Vault deal included in ASV this quarter? - Yes, the UBS deal was signed in the quarter, but the ASV impact will be realized in the following quarters [84][87] Question: What is the pricing outlook given the lower CPI? - Management expects international pricing to align with the lower CPI, impacting annual price increases [90][92] Question: How are technology costs impacting margins? - Management is actively managing technology and people costs, with expectations of a ramp-up in expenses for strategic investments in the second half [96][100]
FactSet (FDS) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
ZACKS· 2025-03-20 14:31
Core Insights - FactSet Research (FDS) reported revenue of $570.66 million for the quarter ended February 2025, reflecting a year-over-year increase of 4.5% [1] - Earnings per share (EPS) for the quarter was $4.28, slightly up from $4.22 in the same quarter last year, with an EPS surprise of +2.15% compared to the consensus estimate of $4.19 [1] Financial Performance Metrics - Total Annual Subscription Value (ASV) reached $2.31 billion, exceeding the average estimate of $2.30 billion [4] - Total Users stood at 219,141, slightly below the average estimate of 221,880 [4] - Total Clients increased to 8,645, surpassing the average estimate of 8,325 [4] - ASV from domestic clients was $1.50 billion, above the average estimate of $1.48 billion [4] - ASV from international clients was $805 million, slightly below the average estimate of $811.93 million [4] - ASV from buy-side clients was 82.3%, marginally above the estimated 82.2% [4] - ASV from sell-side clients was 17.7%, below the estimated 17.9% [4] Revenue Breakdown - Revenues from US clients were $369.7 million, exceeding the average estimate of $369.19 million, with a year-over-year change of +4.9% [4] - Revenues from international clients were $201 million, slightly below the average estimate of $201.57 million, reflecting a +4% year-over-year change [4] - Revenues from clients in EMEA were $143.40 million, close to the average estimate of $144.53 million, with a +3% year-over-year change [4] - Revenues from clients in the Asia Pacific region were $57.60 million, above the average estimate of $57.33 million, representing a +6.5% year-over-year change [4] Stock Performance - FactSet shares have returned -6% over the past month, compared to a -7.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]
FactSet(FDS) - 2025 Q2 - Earnings Call Transcript
2025-03-20 14:02
Financial Data and Key Metrics Changes - In the second quarter, organic ASV grew by 4.1% year over year, with adjusted operating margin at 37.3% and adjusted diluted EPS at $4.28 [9][24] - GAAP revenues increased by 4.5% year over year to $571 million, while organic revenues grew by 4% to $568 million [25] - GAAP operating margin decreased by approximately 80 basis points to 32.5% compared to the previous year, while adjusted operating margin decreased by 100 basis points to 37.3% [25][26] - Free cash flow was $150 million in the second quarter, up 23% over the same period last year [29] Business Line Data and Key Metrics Changes - Wealth management saw double-digit growth, with significant market share gains, particularly with UBS selecting FactSet for their advisor desktops [12][13] - The banking segment faced challenges, but renewal activity increased notably, with over a dozen large banking renewals signed [14][15] - Private equity and venture capital (PEVC) experienced accelerated double-digit growth, while corporates also contributed to growth due to the Erwin acquisition [15][16] Market Data and Key Metrics Changes - In the Americas, organic ASV grew by 4%, with mixed results in asset management and banking [11] - EMEA saw organic ASV growth of 3%, with momentum in hedge funds and PEVC firms offset by headwinds in asset management [11] - Asia Pacific maintained 7% organic ASV growth, driven by strong sales of data solutions among wealth, corporates, hedge funds, and PEVC firms [11] Company Strategy and Development Direction - The company aims to drive top-line growth, focusing on wealth management as a key growth engine and expanding its product offerings [18][19] - Recent acquisitions, including Erwin and Liquidity Book, are expected to enhance cross-selling opportunities and accelerate growth [19][32] - The company is prioritizing investments in technology and generative AI to support growth and improve operational efficiency [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching an inflection point in ASV growth, despite a challenging market environment [9][10] - There is optimism regarding the strength of the sales pipeline and product-led innovation, with expectations for growth acceleration in the second half of the year [10][20] - Management acknowledged ongoing market uncertainties but highlighted positive client dialogues and a robust pipeline [10][20] Other Important Information - The company repurchased nearly 137,000 shares for approximately $64 million and paid a quarterly dividend of $1.04 per share [31] - The gross leverage ratio was 1.7 times, consistent with maintaining investment-grade ratings [32] - The guidance for organic ASV growth was narrowed to a range of approximately 4.4% to 5.8% [33] Q&A Session Summary Question: Can you provide more details on the traction with clients regarding Pitch Creator and other Gen AI products? - Management noted strong momentum with Pitch Creator and other products, with positive reception from banks and ongoing trials with large clients [36][37] Question: Is the environment improving, or is the company performing better in a challenging environment? - Management indicated that while the environment remains tough, they have de-risked major challenges and are seeing strength across all markets [44][46] Question: How does the company view the impact of banking on guidance? - Management stated that they are not relying on banking for their numbers, with conservative estimates baked into guidance [52][54] Question: Is the UBS Vault deal included in ASV this quarter? - Management confirmed that the UBS deal was signed in the quarter, but the ASV impact will be realized in future quarters as implementation occurs [57][62] Question: What is the outlook for pricing in the context of lower CPI? - Management explained that lower CPI impacts annual price increases, but they are capturing additional ASV through higher pricing and increased volume in new business [64][68]
FactSet(FDS) - 2025 Q2 - Earnings Call Transcript
2025-03-20 13:00
Financial Data and Key Metrics Changes - Organic ASV grew by 4.1% year over year, with adjusted operating margin at 37.3% and adjusted diluted EPS at $4.28 [9][24] - GAAP revenues increased by 4.5% year over year to $571 million, while organic revenues grew by 4% to $568 million [25] - GAAP operating margin decreased by approximately 80 basis points to 32.5%, while adjusted operating margin decreased by 100 basis points year over year to 37.3% [25][26] - Free cash flow was $150 million in the second quarter, up 23% over the same period last year [29] Business Line Data and Key Metrics Changes - Wealth management saw double-digit growth, with significant market share gains, particularly with UBS selecting FactSet for their advisor desktops [12][13] - Banking faced challenges, but renewal activity increased notably, with over a dozen large banking renewals signed [14][15] - PEVC (Private Equity and Venture Capital) experienced accelerated double-digit growth, while corporates contributed to growth due to the Erwin acquisition [15][16] Market Data and Key Metrics Changes - In the Americas, organic ASV grew by 4%, with mixed results in asset management and banking [11] - EMEA saw organic ASV growth of 3%, with momentum in hedge funds and PEVC firms offset by headwinds in asset management [11] - Asia Pacific maintained 7% organic ASV growth, driven by strong sales of data solutions among wealth, corporates, hedge funds, and PEVC firms [11] Company Strategy and Development Direction - The company aims to drive top-line growth, focusing on wealth management as a key growth engine and expanding its product offerings [18][19] - Recent acquisitions, including Erwin and Liquidity Book, are expected to enhance cross-selling opportunities and accelerate growth [19][20] - The company is prioritizing investments in technology and generative AI to improve workflow productivity and client engagement [20][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching an inflection point in ASV growth, despite a challenging market environment [9][10] - There is optimism regarding the sales pipeline and product-led innovation, with expectations for growth acceleration in the second half of the fiscal year [9][10] - Management acknowledged market uncertainties but highlighted strong client relationships and a robust pipeline as positive indicators for future performance [20][34] Other Important Information - The company reaffirmed its guidance for organic ASV growth at a midpoint of 5%, narrowing the range to $100 million to $130 million [32][33] - The effective tax rate is expected to remain between 17% to 18% [34] - The company returned $392 million to shareholders over the last twelve months through dividends and share repurchases [31] Q&A Session Summary Question: Can you provide more details on the traction with clients regarding Pitch Creator and other Gen AI products? - Management noted strong momentum with Pitch Creator and positive reception from banks, with plans to monetize these products more seriously in Q3 and Q4 [36][37] Question: Is the environment improving, or is the company performing better in a challenging environment? - Management indicated that while the environment remains challenging, they have de-risked major issues and are seeing strength across all markets [44][46] Question: How does the company view the impact of banking on guidance? - Management stated that they are not relying on banking for their numbers, with conservative estimates baked into the guidance [52][54] Question: Is the UBS Vault deal included in ASV this quarter? - Management confirmed that the UBS deal was booked in Q2, but user contributions will come in later quarters [57][62] Question: Can you clarify the pricing dynamics in the quarter? - Management explained that lower CPI impacted annual price increases, but they are capturing additional ASV through higher pricing and volume in new business [64][66] Question: What is the outlook for the data and feeds business? - Management highlighted strong demand for high-quality data, with improvements in the data feed business driven by new tech startups and partnerships [78][80]
FactSet(FDS) - 2025 Q2 - Earnings Call Presentation
2025-03-20 12:39
Thursday, March 20, 2025 FactSet Earnings Call Second Quarter Fiscal 2025 Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward. Copyright © 2025 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Forward-Looking Statements and Non-GAAP Measures This presentation, and other statements that FactSet may make in connection with this presentation, contains forward-looking statements based on management's current expectations, assumptions, esti ...
FactSet Research (FDS) Tops Q2 Earnings Estimates
ZACKS· 2025-03-20 12:10
Company Performance - FactSet reported quarterly earnings of $4.28 per share, exceeding the Zacks Consensus Estimate of $4.19 per share, and showing a slight increase from $4.22 per share a year ago, representing an earnings surprise of 2.15% [1] - The company posted revenues of $570.66 million for the quarter ended February 2025, matching the Zacks Consensus Estimate and up from $545.95 million year-over-year [2] - Over the last four quarters, FactSet has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Outlook - FactSet shares have declined approximately 8.7% since the beginning of the year, compared to a 3.5% decline in the S&P 500 [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $4.37 on revenues of $577.8 million, and for the current fiscal year, it is $17.15 on revenues of $2.3 billion [7] Industry Context - The Business - Information Services industry, to which FactSet belongs, is currently ranked in the bottom 19% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact FactSet's stock performance [5]