Financial data and software company FactSet (FDS) reported splendid revenue growth for the second quarter of 2018, driven by increased sales of analytics products and content & technology solutions. Reported profit, however, took a plunge due to the non-recurring tax items totaling $22.9 million, resulting from the recently enacted U.S. Tax Cuts and Jobs Act (TCJA). Reported revenue spiked 13.8% year-over-year to $335.2 million. Earnings plunged 20% to $53.1 million or $1.33 per share. On an adjusted basis, earnings jumped 17.1% to $2.12 per share.
For the second quarter, FactSet’s Annual Subscription Value increased to $1.35 billion compared to $1.19 billion in the prior year. Organic ASV, which excludes the effects of acquisitions, dispositions, and foreign currency, increased 5.8%.
The company updated its guidance and increased its annual guidance for GAAP and adjusted diluted earnings per share and lowered the effective annual tax rate due to the TCJA. For fiscal 2018, FactSet confirmed its GAAP revenue outlook of $1.34 billion and $1.36 billion. Annual effective tax rate is now expected in the range of 18.0% and 19.5%, lower from the earlier guided range of 21% and 22.5%.
GAAP diluted EPS is now expected to be in the range of $6.95 and $7.15, down from the earlier guided range of $7.60 and $7.80. Adjusted diluted EPS is expected to be in the range of $8.35 and $8.55, up from the earlier guided range of $8.25 and $8.45.