FactSet Earnings: Mixed Quarter; Client Pressures Weigh on Outlook

FactSet reported an OK fiscal second quarter. Revenue of $546 million was about $1 million shy of the FactSet consensus. However, expense control and a low tax rate resulted in adjusted earnings per share topping the consensus by 8%. We attribute the market's negative reaction to the firm’s outlook: FactSet largely maintained its outlook for fiscal 2024 but now expects revenue and organic annual subscription value, or ASV, growth to come in at the low end of its previous range. We will maintain our narrow moat rating and $390 fair value estimate. Even with today’s negative reaction, we still regard the shares as pricey.