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Valued at a market cap of $17.3 billion, FactSet Research Systems Inc. (FDS) is a financial data company that provides integrated financial information and analytical applications to the investment community. The Norwalk, Connecticut-based company offers various tools and resources, including company and industry analyses, full screening tools, portfolio analysis, risk profiles, alpha-testing, portfolio optimization, and research management solutions. It is expected to announce its fiscal Q1 earnings results on Tuesday, Dec. 17.
Ahead of this event, analysts expect the financial data company to report a profit of $4.30 per share, up 4.4% from $4.12 per share in the year-ago quarter. The company has an impressive earnings surprise history, consistently beating Wall Street's bottom-line estimates in each of the last four quarters. In Q4 2024, the company’s adjusted EPS of $3.74 outpaced the consensus estimates by a 3.9% margin and increased by 23.8% from a year ago, thanks to its 240 bps improvement in adjusted operating margin.
For fiscal 2025, analysts expect FDS to report an EPS of $17.20, up 4.6% from $16.45 in fiscal 2024. Moreover, EPS is expected to increase 9% year-over-year to $18.75 in fiscal 2026.
Shares of FDS have declined 4.6% on a YTD basis, significantly lagging behind both the S&P 500 Index's ($SPX) 21.8% rise and the Financial Select Sector SPDR Fund’s (XLF) 24% return over the same period.
On Sep. 19, shares of FDS jumped 5.1% after its Q4 and full-year earnings release. Along with its Q4 adjusted EPS, its revenue of $562.2 million surpassed the Wall Street estimates of $547.3 million and increased 4.9% from a year ago. Moreover, the company’s 4.7% annual growth in Annual Subscription Value (ASV) plus professional services and robust operating margin expansion might have further bolstered investor confidence.
Yet, analysts' consensus view on FactSet Research’s stock is cautious, with a "Hold" rating overall. Among 18 analysts covering the stock, one recommends a "Strong Buy," 11 suggest a "Hold," and six indicate a “Strong Sell” rating. As of writing, the stock is trading flat against its mean price target of $454.86.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
