FactSet beats profit estimates on strong demand for its analytical tools
FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., September 11, 2024. REUTERS/Brendan McDermid/File Photo
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 per cent to $461.01 before the bell. The stock has lost nearly 6.34 per cent so far this year, compared with a 17.79 per cent 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 per cent 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 per cent to $562.2 million for the quarter.
