FactSet shares fall as guidance disappoints investors

NEW YORK - FactSet Research Systems Inc. (NYSE:FDS) reported better-than-expected fourth quarter results on Thursday, but its shares fell 2.64% as the company's fiscal 2025 earnings guidance came in below analyst estimates.

The financial data and analytics provider posted adjusted earnings per share of $3.74 for the quarter ended August 31, beating the consensus forecast of $3.62. Revenue rose 4.9% YoY to $562.2 million, also topping expectations of $546.76 million.

However, FactSet's outlook for fiscal 2025 earnings of $16.80-$17.40 per share fell short of Wall Street's projection of $17.36. The company expects full-year revenue of $2.29-$2.31 billion, in line with the $2.30 billion consensus estimate.

"During a time of technological change and an external environment marked by both uncertainty and opportunity, FactSet's open platform strategy is resonating with clients seeking growth and efficiency," said CEO Phil Snow in a statement.

For the fourth quarter, organic revenue growth was 5.0% YoY. Annual subscription value plus professional services increased 4.8% organically to $2.27 billion.

FactSet's adjusted operating margin expanded to 35.8% from 33.4% a year earlier, driven by lower compensation costs. The company ended the quarter with 8,217 clients, up 3.7% from the prior year.

Looking ahead, FactSet forecast organic annual subscription value growth of 4-6% for fiscal 2025.

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Source: Investing.com