FactSet Stock Rises on Q3 Profit Beat, Raised Guidance

- Advertisement -

The Rise of FactSet Research Systems: A Look at Q3 Performance and Future Outlook

Key Takeaways

  • 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.

FactSet Research Systems (FDS) shares saw a significant uptick on Friday following the release of their third-quarter financial results. The company exceeded profit expectations and raised its full-year guidance, driven by increased revenues from institutional asset managers, asset owners, partners, and corporates.

- Advertisement -

In the fiscal 2024 third quarter, FactSet reported adjusted earnings per share (EPS) of $4.37, surpassing analysts’ consensus estimate of $3.90. Revenue also saw a healthy increase of 4.3% year-over-year, reaching $552.7 million, in line with forecasts. Organic revenue experienced a 4.5% growth during this period.

- Advertisement -

One of the standout metrics was the adjusted operating margin, which surged to 39.4% from 36.0% compared to the previous year. Additionally, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to $239.9 million, marking a substantial 16.9% increase.

The company’s Annual Subscription Value (ASV) plus professional services reached $2.22 billion, reflecting a 4.7% uptick. The number of FactSet users also saw a positive trend, increasing by 1,662 to a total of 208,140. FactSet attributed these gains to all firm types except banking, with wealth clients being the primary drivers of growth.

CEO Phil Snow expressed optimism about FactSet’s future trajectory, emphasizing the company’s commitment to leveraging generative AI to enhance client efficiency and reduce total cost of ownership.

- Advertisement -

FactSet Raises FY Adjusted EPS, Lowers Revenue Guidance

FactSet revised its full-year adjusted EPS outlook to a range of $16.00 to $16.40, up from the previous forecast of $15.60 to $16.00. However, the company adjusted its revenue guidance downward to $2.18 billion to $2.19 billion, compared to the earlier projection of $2.20 billion to $2.21 billion.

Following the positive earnings report, FactSet Research Systems shares experienced a 5% increase to $428.49 shortly after the market opened on Friday. Despite this uptick, the stock is still down more than 10% year-to-date.

In conclusion, FactSet Research Systems’ strong performance in the third quarter and optimistic outlook for the full year indicate a promising future for the financial data provider. With a focus on innovation and client-centric solutions, FactSet is well-positioned to navigate the evolving landscape of the financial industry.

For more information on FactSet’s latest financial updates, you can read the original article on Investopedia [here](https://www.investopedia.com/factset-stock-rises-on-q3-profit-beat-raised-guidance-8667132).

News Desk

- Advertisement -

Explore more

Google Shopping API Integration Guide | ORBITAL AFFAIRS

Connecting your online store to Google Shopping can help more customers find your products. The The post Step-by-Step Guide to Google Shopping API Integration appeared...

Filming Locations for Mars in “The Martian” | ORBITAL AFFAIRS

Ridley Scott directed a captivating film in 2015, “The Martian.” He adapted the novel of a similar name, “The Martian” by Andy Weir, and...
Are Jessica and Harry still together in 'Perfect Match 2'? | ORBITAL AFFAIRS

Are Jessica and Harry still together in ‘Perfect Match 2’? |...

In the year 2020, Harry made his debut on reality television as a competitor on Too Hot to Handle Season 1. He was one...
Sarepta Therapeutics Soars with Expanded Approval for Muscular Dystrophy Drug

Sarepta Therapeutics Soars with Expanded Approval for Muscular Dystrophy Drug

Sarepta Therapeutics Shares Soar After FDA Approval for Expanded Use of Rare Muscle Disease Drug Key Takeaways: Sarepta Therapeutics shares jumped in premarket trading...

Fast CDN Guide for Website Performance | ORBITAL AFFAIRS

The modern world is controlled by the internet, and having a fast Content Delivery Network (CDN) makes a world of difference. You can think...
French Film Festival: Love in Nature | ORBITAL AFFAIRS

French Film Festival: Love in Nature | ORBITAL AFFAIRS

The Nature of Love, also known as Simple comme Sylvain in French, is a romantic comedy-drama film that will be released in 2023 in...

Is Douda’s Fate in “The Chi” at Risk? | ORBITAL AFFAIRS

In this realm world of entertainment, Douda is, a fictional character in “The Chi” series. He became the subject of speculation because those who...

Anthropic Debuts Advanced Claude Chatbot | ORBITAL AFFAIRS

The Latest Advancements in Artificial Intelligence: Anthropic Releases Claude 3.5 Sonnet Chatbot Introduction Anthropic, an artificial intelligence (AI) company backed by tech giants like Amazon and...