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$FDS' annual subscription value, or ASV, rose 8.8% organically to $1.15Bil at Aug. 31, 2016 from last year. Over last 3 months, organic ASV rose $29.1MM, which excludes acquisitions, dispositions and foreign currency effects. Buy-side and sell-side ASV growth rates for 4Q16 were 9% and 7.6%.
$FDS has discontinued quarterly guidance, but provided annual guidance. For fiscal year 2018, the company expects revenue to be in the range of $1.34-1.36Bil. GAAP EPS is expected to be in the range of $7.60-7.80 and adjusted EPS to be in the range of $8.25-8.45.
For the first quarter of 2018, $FDS reported a 5.7% YoY growth in profit to $70.4MM, or $1.77 per share. On adjusted basis, the company's earnings grew 16.6% YoY to $2.04 per share. Revenue came in at $329MM, up 14.3% from a year ago. Annual Subscription Value (ASV) increased to $1.32Bil at Nov. 30, 2017 compared with prior year ASV of $1.17Bil.
$FDS appointed Gene Fernandez as the Chief Technology and Product Officer (CTPO), reporting directly to FactSet's CEO, Philip Snow. Fernandez joins FactSet from J.P. Morgan where he was most recently the Chief Technology Officer, New Product Development. Mark Hale, COO is leaving FactSet effective on Dec. 31, 2017, to pursue other opportunities.
$FDS said it plans to make investments in analytics in the coming months, in addition to investing in acquisitions. While being confident about its capability to integrate the recently acquired entities in a seamless manner, the company believes it would take up to 24 months for margins to return to the historically high levels.
$FDS attributed the strong growth in Annual Subscription Value to its premium products and Feed business. In 1Q18, the company intends to revive margin growth, which stayed at the low end of its guidance in the fourth quarter of 2017 due the impact of costs associated with acquisitions.
$FDS said the 4Q17 revenues and adjusted earnings were at the high end of its outlook. GAAP results were impacted by costs related to restructuring activities. FactSet continues to diversify its products through acquisitions and product investment. In 2018, the company intends to maintain focus on integrating acquisitions.
$FDS said it paid a quarterly dividend of around $22MM, or $0.56 per share, to common shareholders in the fourth quarter of 2017. The company also repurchased 270,000 shares for about $44MM during the quarter, under its existing share repurchase program.
$FDS reported a 15% YoY growth in Annual Subscription Value (ASV) to $1.32Bil in 4Q17, helped by new acquisitions in key growth areas. Organic ASV, excluding the effects of acquisitions, dispositions and foreign currency, increased 5.7%. ASV from US operations was $825MM, up 9% compared to last year.
$FDS expects to record GAAP revenue between $327MM and $333MM in 1Q18. GAAP operating margin is forecast in the 28-29% range, while non-GAAP operating margin is estimated between 31% and 32%. GAAP EPS and non-GAAP EPS are expected to be in the range of $1.75-$1.81 and $1.93-$1.99 respectively. The midpoint of Non-GAAP EPS represents 12% YoY growth.
$FDS, a provider of financial analytics services, reported a marked decline in 4Q17 profit, despite a 14% growth in revenues. Earnings per share fell 57% to $1.52 from $3.55 last year, while revenues rose to $326.6MM from $287.3MM. However, adjusted earnings, excluding special items, moved up to $1.90 per share from $1.69 per share in 4Q16.
$FDS, a provider of integrated financial information, has integrated Liquidnet’s Broker Vote and Commission Management System with FactSet’s Research Management Solutions (RMS). Now, firms can track the research they have consumed, the value they derive from it, and all relevant interactions around an investment decision in FactSet RMS.
$FDS is primarily focused on getting the recent acquisitions integrated well and getting back to the margins it had prior to the M&A activity. The company is focused on revenue growth as the most important factor. $FDS believes that once investments have been made in all the high-growth areas, it can evaluate opportunities to expand margins.
$FDS' US revenues grew 5% organically in 3Q17, with most of this increase primarily coming from the Analytics and Data Feeds products. International revenues increased 8% on an organic basis with strong performance from the Asia-Pacific region.
During 3Q17, $FDS’ organic revenues and organic ASVs grew 6% YoY. Adjusted operating margin was 32%. The results were impacted by cost pressures within the industry as clients seek to lower their total cost of ownership. $FDS sees this as an opportunity to partner with clients and help them leverage technology to optimize costs.
$FDS repurchased 300,000 shares for $48.3MM during 3Q17 under its existing share repurchase program. Over the last 12 months, FactSet has returned $458MM to stockholders in the form of share repurchases and dividends. As of May 31, 2017, $288.2MM is available for future share repurchases.
For 4Q17, $FDS sees GAAP Revenues in the range of $321-328MM. GAAP EPS is expected to be $1.67-1.73 and adjusted EPS in the range of $1.86-1.92. The midpoint of the adjusted EPS range represents 12% growth over the prior year. GAAP operating margin is anticipated between 28% and 29%.
Client count for $FDS as of May 31, 2017 was 4,629, an increase of 225 clients in the past three months. This increase includes 117 new clients from the acquisitions of BISAM and FDSG. User count grew 237 to 86,025 during the quarter and annual client retention was greater than 95% of Annual Subscription Value.