Company Reaffirms Full-Year Fiscal 2024 Guidance NORWALK, Conn., July 23, 2024 (GLOBE NEWSWIRE) -- FactSet ("FactSet" or the "Company") (NYSE:FDS) (NASDAQ:FDS), a global financial digital platform and enterprise solutions provider, today announced that Helen Shan, a seasoned FactSet executive who currently serves as Executive Vice President and Chief Revenue Officer, has been appointed Chief Financial Officer, effective immediately. Shan succeeds Linda Huber, who is transitioning out of the Company. Shan br ...

Company Overview - FactSet Research Systems Inc. is a leading provider of integrated financial information and analytical applications for the global investment community, headquartered in Norwalk, CT [7] - The company offers a wide range of tools and resources, including company and industry analyses, portfolio analysis, risk profiles, and research management solutions [7] - FactSet generates revenue from subscriptions to its products and services, such as workstations, analytics, and trade execution [7] Earnings Estimates - Nine analysts have revised their earnings estimates upwards for fiscal 2024, with the Zacks Consensus Estimate increasing by $0.35 to $16.32 per share [8] - FactSet has an average earnings surprise of 1.6%, indicating a positive trend in earnings performance [8] Zacks Rank and Style Scores - The Zacks Rank utilizes earnings estimate revisions to help investors create successful portfolios, with stocks rated from 1 (Strong Buy) to 5 (Strong Sell) [4][6] - The Zacks Style Scores categorize stocks based on value, growth, and momentum characteristics, providing additional insights for investors [2][10] - FactSet has a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating a stable position in the market [23] Investment Insights - The VGM Score combines value, growth, and momentum styles, helping investors identify stocks with attractive value and promising growth [19] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for higher chances of success [21] - FactSet's solid Zacks Rank and top-tier Momentum and VGM Style Scores make it a noteworthy option for investors [24]

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day. That's where the Style Scores come in. As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when pickin ...

[Part I FINANCIAL INFORMATION](index=5&type=section&id=Part%20I%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Presents FactSet's unaudited consolidated financial statements for Q3 and YTD May 31, 2024, including income, balance sheets, cash flows, and notes [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Q3 FY2024 revenues grew 4.3% to $552.7 million, net income rose 17.4% to $158.1 million, with diluted EPS at $4.09 Consolidated Statements of Income Highlights (Unaudited) | Metric (in thousands, except per share data) | Three Months Ended May 31, 2024 | Three Months Ended May 31, 2023 | YoY Change | Nine Months Ended May 31, 2024 | Nine Months Ended May 31, 2023 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $552,708 | $529,811 | 4.3% | $1,640,869 | $1,549,711 | 5.9% | | **Operating Income** | $202,459 | $171,959 | 17.7% | $573,441 | $513,104 | 11.8% | | **Net Income** | $158,135 | $134,663 | 17.4% | $447,630 | $403,054 | 11.1% | | **Diluted EPS** | $4.09 | $3.46 | 18.2% | $11.58 | $10.35 | 11.9% | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of May 31, 2024, total assets were $4.04 billion, liabilities decreased to $2.15 billion, and stockholders' equity rose to $1.89 billion Consolidated Balance Sheet Highlights (Unaudited) | Metric (in thousands) | May 31, 2024 | August 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $858,275 | $770,135 | | **Goodwill** | $1,004,749 | $1,004,736 | | **Total Assets** | $4,039,701 | $3,962,922 | | **Total Current Liabilities** | $671,505 | $484,251 | | **Long-term Debt** | $1,240,626 | $1,612,700 | | **Total Liabilities** | $2,149,297 | $2,342,992 | | **Total Stockholders' Equity** | $1,890,404 | $1,619,930 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) YTD May 31, 2024, operating cash flow increased to $537.2 million, financing used $402.9 million, resulting in a $27.7 million net cash increase Consolidated Cash Flow Highlights (Unaudited) | Metric (in thousands) | Nine Months Ended May 31, 2024 | Nine Months Ended May 31, 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $537,177 | $489,903 | | **Net cash used in investing activities** | ($104,658) | ($72,310) | | **Net cash used in financing activities** | ($402,908) | ($437,357) | | **Net increase (decrease) in cash** | $27,700 | ($16,646) | | **Cash and cash equivalents at end of period** | $453,144 | $486,627 | [Notes to the Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) Detailed notes cover accounting policies, revenue, financial instruments, goodwill, debt, commitments, and segment information, including revenue by geography - The company operates through three geographic segments: Americas, EMEA, and Asia Pacific; internal realignment by firm type in fiscal 2024 did not change reportable segments[33](index=33&type=chunk)[35](index=35&type=chunk) Revenues by Segment (in thousands) | Segment | Three Months Ended May 31, 2024 | Three Months Ended May 31, 2023 | Nine Months Ended May 31, 2024 | Nine Months Ended May 31, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Americas** | $356,468 | $337,691 | $1,057,453 | $992,179 | | **EMEA** | $141,279 | $137,973 | $420,016 | $401,219 | | **Asia Pacific** | $54,961 | $54,147 | $163,400 | $156,313 | | **Total** | **$552,708** | **$529,811** | **$1,640,869** | **$1,549,711** | - As of May 31, 2024, **total debt was $1.43 billion**, down from $1.61 billion at August 31, 2023, including various debt facilities and senior notes[105](index=105&type=chunk) - In Q3 2024, the Board approved a **6% increase in quarterly dividend to $1.04 per share**; YTD May 31, 2024, **384,150 shares were repurchased for $171.9 million**[137](index=137&type=chunk)[142](index=142&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A discusses Q3 and YTD FY2024 financial performance, highlighting 4.3% Q3 revenue growth, 5.0% Organic ASV growth, and a 36.6% operating margin [Executive Overview and Business Strategy](index=35&type=section&id=Executive%20Overview%20and%20Business%20Strategy) FactSet's strategy focuses on expanding its open content and analytics platform, execution excellence, and growth, with Q3 FY2024 revenues at $552.7 million and diluted EPS at $4.09 - The company's strategy focuses on building the leading open content and analytics platform, with key initiatives including expanding the digital platform, scaling the content refinery, leveraging AI, ensuring execution excellence, and fostering a growth mindset[175](index=175&type=chunk)[176](index=176&type=chunk)[178](index=178&type=chunk) [Key Performance Metrics](index=37&type=section&id=Key%20Performance%20Metrics) As of May 31, 2024, Organic ASV plus Professional Services grew 5.0% to $2.22 billion, client count rose 3.3% to 8,029, and users increased 10.8% to over 208,000 Organic ASV plus Professional Services (as of May 31, 2024) | Metric (in millions) | Amount | Annual Growth Rate | | :--- | :--- | :--- | | As reported ASV plus Professional Services | $2,219.2 | - | | Currency impact | $1.2 | - | | **Organic ASV plus Professional Services** | **$2,220.4** | **5.0%** | - Organic ASV growth was driven by higher demand and price increases across workstations, data solutions, middle office solutions, and CGS subscriptions[177](index=177&type=chunk)[182](index=182&type=chunk) Client and User Growth | Metric | As of May 31, 2024 | As of May 31, 2023 | YoY Change | | :--- | :--- | :--- | :--- | | **Clients** | 8,029 | 7,770 | 3.3% | | **Users** | 208,140 | 187,845 | 10.8% | [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Q3 FY2024 revenues increased 4.3% to $552.7 million, operating income rose 17.7% to $202.5 million, and operating margin expanded to 36.6% Revenues by Segment - Q3 FY2024 vs Q3 FY2023 (in thousands) | Segment | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | **Americas** | $356,468 | $337,691 | 5.6% | | **EMEA** | $141,279 | $137,973 | 2.4% | | **Asia Pacific** | $54,961 | $54,147 | 1.5% | | **Consolidated** | **$552,708** | **$529,811** | **4.3%** | - **Total operating expenses decreased by 2.1%** in Q3 2024, primarily due to a **10.9% reduction in SG&A expenses** from lower employee compensation costs[208](index=208&type=chunk)[214](index=214&type=chunk) - The operating margin for Q3 2024 **increased by 410 basis points to 36.6%**, driven by lower employee compensation and bad debt expenses as a percentage of revenues[218](index=218&type=chunk) - The effective tax rate for Q3 2024 was **17.0%**, nearly flat compared to 16.9% in the prior-year quarter[233](index=233&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=Liquidity%20and%20Capital%20Resources) As of May 31, 2024, cash was $453.1 million; YTD operating cash flow was $537.2 million, free cash flow $477.5 million, with capital used for debt, repurchases, and dividends - During the nine months ended May 31, 2024, the company **repaid $187.5 million** under its 2022 Term Facility, including **$150.0 million in voluntary prepayments**[249](index=249&type=chunk)[271](index=271&type=chunk) - A total of **$283.2 million was returned to stockholders** YTD FY2024 through **dividends ($111.3 million)** and **share repurchases ($171.9 million)**[260](index=260&type=chunk)[262](index=262&type=chunk)[271](index=271&type=chunk) Free Cash Flow (in thousands) | Metric | Nine Months Ended May 31, 2024 | Nine Months Ended May 31, 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $537,177 | $489,903 | | **Less: Capital Expenditures** | ($59,722) | ($61,421) | | **Free cash flow** | **$477,455** | **$428,482** | [Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks from foreign currency and interest rates using forward contracts for currency exposure and interest rate swaps for variable-rate debt - The company hedges **25% to 75% of projected operating income exposure** in British Pound Sterling, Indian Rupee, Euro, and Philippine Peso using foreign currency forward contracts[277](index=277&type=chunk)[284](index=284&type=chunk) - A hypothetical **10% U.S. dollar devaluation** as of May 31, 2024, would increase fair value of forward contracts by **$18 million** and decrease operating income by **$32 million**[287](index=287&type=chunk) - As of May 31, 2024, variable rate debt interest rate exposure was **$287.5 million**; a **25 basis point SOFR change** would result in an approximate **$1 million change to annual interest expense**[293](index=293&type=chunk) [Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of May 31, 2024, with no material changes in internal control over financial reporting - The Principal Executive Officer and Principal Financial Officer concluded that disclosure controls and procedures were effective as of the end of the reporting period[295](index=295&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[296](index=296&type=chunk) [Part II OTHER INFORMATION](index=54&type=section&id=Part%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=54&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, including a Massachusetts sales tax dispute, with management believing the outcome will not be materially adverse - The company is appealing Massachusetts sales tax assessments for periods from January 2006 through June 2021, believing it will ultimately prevail[133](index=133&type=chunk) [Risk Factors](index=54&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended August 31, 2023 - No material changes to the risk factors identified in the Annual Report on Form 10-K for the fiscal year ended August 31, 2023 have occurred[299](index=299&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details Q3 FY2024 common stock repurchases, totaling 137,993 shares, with $128.1 million remaining authorized for future repurchases as of May 31, 2024 Issuer Purchases of Equity Securities (Q3 FY2024) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | | :--- | :--- | :--- | :--- | | **March 2024** | 36,688 | $466.23 | 36,200 | | **April 2024** | 48,500 | $432.56 | 48,500 | | **May 2024** | 52,805 | $433.53 | 50,450 | | **Total** | **137,993** | - | **135,150** | - As of May 31, 2024, **$128.1 million remained available** for future repurchases under the company's share repurchase program[301](index=301&type=chunk) [Defaults Upon Senior Securities](index=55&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities occurred during the reporting period - None[303](index=303&type=chunk) [Mine Safety Disclosures](index=55&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[304](index=304&type=chunk) [Other Information](index=55&type=section&id=Item%205.%20Other%20Information) No other information to report, and no Rule 10b5-1 trading arrangements were adopted or terminated by directors or officers - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the quarter ended May 31, 2024[305](index=305&type=chunk) [Exhibits](index=56&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including officer certifications and XBRL data files

Core Viewpoint - The article discusses the Zacks Rank and Style Scores as tools for investors to identify high-potential stocks, emphasizing the importance of combining these metrics for better investment decisions [1][10][22]. Group 1: Zacks Rank and Style Scores - The Zacks Rank is a proprietary stock-rating model that utilizes earnings estimate revisions to help investors build successful portfolios [13]. - Stocks are rated on a scale from 1 (Strong Buy) to 5 (Strong Sell), with 1 stocks historically producing an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [22]. - The Style Scores categorize stocks into Value, Growth, Momentum, and VGM (Value, Growth, Momentum) scores, which help investors identify stocks with the best chances of beating the market [2][11][12]. Group 2: FactSet Research Systems Inc. (FDS) - FactSet Research Systems Inc. is a leading provider of integrated financial information and analytical applications for the global investment community, offering a wide range of tools and resources for investment professionals [7]. - FDS currently holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of B, indicating a moderate investment potential [17][23]. - Over the last 60 days, eight analysts have revised their earnings estimates higher for FDS, with the Zacks Consensus Estimate increasing by $0.31 to $16.30 per share, and the company has an average earnings surprise of 1.6% [18].

The top line amounted to $3.5 billion, which surpassed the consensus estimate by 2.9% and increased 10.5% year over year. FactSet Research Systems, Inc. (FDS) delivered robust results in the third quarter of fiscal 2024, driven by high volume through sales to institutional assets managers, asset owners, partners and corporates. The earnings beat, however, failed to impress the market as the company's shares declined 2% since the release of results on Jun 21. FDS's earnings per share (excluding 28 cents from ...

Copyright © 2022 FactSet Research Systems Inc. All rights reserved. Confidential: Do not forward. | --- | --- | --- | --- | |-------------------------------------------|----------|----------|----------| | (Unaudited) | 2024 | 2023 | % Change | | Net Cash Provided by Operating Activities | $238,235 | $218,589 | | | Capital Expenditures | (21,339) | (26,005) | | | Free Cash Flow | $216,896 | $192,584 | 12.6% | Copyright © 2024 FactSet Research Systems Inc. All rights reserved. FactSet Business Use Only Copyri ...

FactSet Research Systems, Inc. (FDS) has reported mixed third-quarter fiscal 2024 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same. FDS's earnings per share (excluding 28 cents from non-recurring items) of $4.4 beat the consensus mark by 11.8% and increased 15.3% from the year-ago quarter. Then again, revenues of $552.7 million missed the Zacks Consensus Estimate by a slight margin but rose 4.3% from the year-ago quarter. Revenues in Detail Organic revenues increased ...

FactSet Research (FDS) reported $552.71 million in revenue for the quarter ended May 2024, representing a year-over-year increase of 4.3%. EPS of $4.37 for the same period compares to $3.79 a year ago. The reported revenue represents a surprise of -0.26% over the Zacks Consensus Estimate of $554.14 million. With the consensus EPS estimate being $3.91, the EPS surprise was +11.76%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall ...

FactSet Research Systems beat third-quarter profit forecasts and raised its full-year outlook as revenue and operating margin gained. The financial data provider said sales to institutional asset managers, asset owners, partners, and corporates increased. FactSet boosted its 2024 adjusted earnings per share (EPS) estimate, although it lowered its revenue guidance. | --- | --- | |---------------------------------------------------------------------------------------------------------------------------------- ...