FactSet beats profit estimates on strong demand for its analytical tools
BY Reuters | ECONOMIC | 09/19/24 09:00 AM EDTSept 19 (Reuters) - FactSet Research Systems
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)