FDS Stock Barely Moves After Posting Q2 Earnings Beat, Revenue Rise

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]