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FactSet’s Q1 results top market consensus

FactSet Research Systems (FDS), which provides financial information and analytics software for investment professionals, Tuesday reported better-than-expected first quarter results.

The company reported earnings of $2.35 per share, which surpassed analysts’ expectation of $2.28 per share. Revenue rose 6.8% to 351.6 million during the first quarter. Analysts had expected the top line to hit only $349.54 million.

Factset Q1 2019 earnings infographic

The growth in top line was primarily fueled by higher sales of wealth management solutions and content and technology solutions.

Annual Subscription Value (ASV) plus professional services organically grew 6.6% to $1.42 billion at the end of November 30, 2018. In the US, ASV improved 6.3% to $876.9 million

CFO Helen Shan said, “We believe our expanding suite of solutions allows us to further penetrate the market and take market share. With a solid start to our fiscal 2019, we expect to deliver results within our guidance range.”

FactSet’s client count witnessed a net increase of 155 clients in the past three months to 5,297. Meanwhile, user count rose to 115,209 driven by an increase in wealth management users.

FactSet reiterated its expectations for fiscal 2019. The Norwalk, Connecticut-based company continues to expect revenues in the range of $1.41 to $1.45 billion. GAAP EPS is seen in the range of $8.70 to $8.90, while adjusted EPS is projected between $9.45  and $9.65.

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Organic ASV plus professional services is expected to increase in the range of $75 million and $90 million over fiscal 2018.

FDS stock has gained 14% so far this year.

 

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Tags: tech stocks
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