FactSet Research Systems Earnings: Double-Digit Revenue Growth, Yet Slightly Misses Estimate

FactSet Research Systems Inc. (NYSE:FDS) reported net income above Wall Street’s expectations for the third quarter. FactSet Research Systems is a provider of integrated global financial and economic information, including fundamental financial data on tens of thousands of companies worldwide.

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FactSet Research Systems Inc. Earnings Cheat Sheet

Results: Net income for FactSet Research Systems Inc. rose to $48 million ($1.05 per share) vs. $43.3 million (92 cents per share) in the same quarter a year earlier. This marks a rise of 10.8% from the year-earlier quarter.

Revenue: Rose 10.2% to $202.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: FactSet Research Systems Inc. reported adjusted net income of $1.15 per share. By that measure, the company beat the mean estimate of $1.04 per share. Analysts were expecting revenue of $202.9 million.

Quoting Management: “While the economy remains volatile, results indicate our philosophy of consistently investing for the future is paying off. Today we announced EPS growth of 14% and record free cash flow of $70 million generated in just the past three months,” says Philip Hadley, Chairman and CEO. “In addition, our third quarter results mark yet another milestone for the Company as we surpassed $200 million in quarterly revenues.”

Key Stats:

For the past five quarters, the company has seen double-digit year-over-year percentage revenue growth. Over that span, the company has averaged growth of 12.9%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 14.6% from the year earlier quarter.

The company has now seen its net income rise for three quarters in a row. In the second quarter, net income rose 3.3% and in the first quarter, the figure rose 9.5%.

For three consecutive quarters, the company has topped analyst estimates. It beat the mark by 5 cents in the second quarter and by 2 cents in the first quarter.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to $1.08 per share from $1.07. For the fiscal year, the average estimate has moved up from $4.09 a share to $4.14 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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