FactSet beats profit estimates on strong demand for its analytical tools

Reuters
2024/09/19

Sept 19 (Reuters) - FactSet Research Systems reported a higher-than-expected fourth-quarter profit on Thursday, as more traders signed up for its financial data and analytics in anticipation of the U.S. Federal Reserve kicking off interest rate cuts.

Shares rose around 3.2% to $461.01 before the bell. The stock has lost nearly 6.34% so far this year, compared with a 17.79% gain for the benchmark S&P 500 index .

A highly anticipated interest rate cut, which the Federal Reserve delivered on Wednesday, kept investors confident in the health of the economy, fueling demand for market-related analytical tools.

Excluding one-time costs, the Norwalk, Connecticut-based company earned $3.74 per share in the three months ended August 31, beating LSEG estimates of $3.62.

Organic annual subscription value $(ASV)$ plus professional services rose 4.8% to $2.27 billion during the quarter. ASV is a forward-looking indicator for sales for the next 12 months from the current subscription services.

The company expects adjusted earnings per share of $16.80 to $17.40 for the fiscal year 2025, compared with analysts' expectations of $17.36.

It forecast annual revenue between $2.29 billion and $2.31 billion versus the estimate of $2.3 billion.

FactSet's revenue rose 4.9% to $562.2 million for the quarter.

(Reporting by Prakhar Srivastava in Bengaluru; Editing by Vijay Kishore)

((Prakhar.srivastava2@thomsonreuters.com;))

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