Company Reports

FactSet has built an attractive subscription-based business providing data and analytics to the financial-services industry. FactSet is best known for its research solutions, which include its core desktop offering geared toward buy-side asset managers and sell-side investment bankers. Research is the largest component of the firm’s annual subscription value but is FactSet’s slowest-growing segment due to its maturity and pressures on asset managers. Beyond research, FactSet offers analytics and trading solutions (32% of firm ASV), which include portfolio analytics, risk management, performance reporting, trade execution, and order management.

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.

FactSet has built an attractive subscription-based business providing data and analytics to the financial-services industry. FactSet is best known for its research solutions, which include its core desktop offering geared toward buy-side asset managers and sell-side investment bankers. Research is the largest component of the firm’s annual subscription value but is FactSet’s slowest-growing segment due to its maturity and pressures on asset managers. Beyond research, FactSet offers analytics and trading solutions (32% of firm ASV), which include portfolio analytics, risk management, performance reporting, trade execution, and order management.

FactSet's fiscal 2024 is off to a solid start. Fiscal first-quarter revenue of $542 million and adjusted earnings per share of $4.12 edged out the FactSet consensus estimates of $540 million and $4.11, respectively. Organic revenue growth of 7.2% was consistent with 7.2% in the prior quarter. However, the firm is seeing elongated sales cycles, and as a result, it lowered its outlook. We will maintain our narrow moat rating and $390 fair value estimate and regard the shares as modestly overvalued.

FactSet has built an attractive subscription-based business providing data and analytics to the financial-services industry. FactSet is best known for its research solutions, which include its core desktop offering geared toward buy-side asset managers and sell-side investment bankers. Research is the largest component of the firm’s annual subscription value but is FactSet’s slowest-growing segment due to its maturity and pressures on asset managers. Beyond research, FactSet offers analytics and trading solutions (32% of firm ASV), which include portfolio analytics, risk management, performance reporting, trade execution, and order management.

FactSet has built an attractive subscription-based business providing data and analytics to the financial-services industry. FactSet is best known for its research solutions, which include its core desktop offering geared toward buy-side asset managers and sell-side investment bankers. Research is the largest component of the firm’s annual subscription value but is FactSet’s slowest-growing segment due to its maturity and pressures on asset managers. Beyond research, FactSet offers analytics and trading solutions (32% of firm ASV), which include portfolio analytics, risk management, performance reporting, trade execution, and order management.

Narrow-moat FactSet finished its fiscal year on solid footing. Revenue of $536 million was virtually in line with the FactSet consensus estimate of $535 million, and though adjusted EPS of $2.93 missed the consensus estimate of $3.51, this was largely due to certain tax issues. We note that the firm’s adjusted operating margin of 33.6% was a strong improvement from last year’s 31.5%. Overall, there was little in FactSet’s earnings release that would alter our long-term view of the firm, and we will maintain our narrow moat rating and $365 fair value estimate.

FactSet has built an attractive subscription-based business providing data and analytics to the financial-services industry. FactSet is best known for its research solutions, which include its core desktop offering geared toward buy-side asset managers and sell-side investment bankers. Research is the largest component of the firm’s annual subscription value but is FactSet’s slowest-growing segment due to its maturity and pressures on asset managers. Beyond research, FactSet offers analytics and trading solutions (32% of firm ASV), which include portfolio analytics, risk management, performance reporting, trade execution, and order management.

Narrow-moat FactSet is performing steadily from an operating perspective. Fiscal third-quarter revenues of $530 million and adjusted EPS of $3.79 edged out the FactSet consensus estimates of $528 million and $3.61, respectively. With FactSet trading at approximately 26 times adjusted 2024 earnings prior to its earnings release, the market is not forgiving for modestly lower revenue guidance. We will maintain our fair value estimate of $365 per share and regard shares as modestly overvalued.

Narrow-moat FactSet is performing robustly amid an uncertain macroeconomic environment. Revenue of $515 million in the quarter was in line with the FactSet consensus estimate while adjusted EBITDA beat the consensus by 2%. Given the macroeconomic uncertainty, particularly in banking, FactSet reduced its core annual subscription value, or ASV, expectation for fiscal 2023 by $15 million, which equates to about 1% of ASV. Shares are trading down about 6%, which we attribute to the market not being forgiving for a company trading at about 27 times fiscal 2023 earnings. Overall, there was little in the earnings release that would alter our long-term view of the firm, and we'll maintain our $365 fair value estimate on FactSet's shares.

FactSet has built an attractive subscription-based business providing data and analytics to the financial-services industry. FactSet is best known for its research solutions, which include its core desktop offering geared toward buy-side asset managers and sell-side investment bankers. Research is the largest component of the firm’s annual subscription value but is FactSet’s slowest-growing segment due to its maturity and pressures on asset managers. Beyond research, FactSet offers analytics and trading solutions (32% of firm ASV), which include portfolio analytics, risk management, performance reporting, trade execution, and order management.

FactSet reported a mixed fiscal 2023 first quarter, with revenue of $505 million coming in below the FactSet consensus of $511 million while adjusted EPS of $3.99 topped the consensus estimate of $3.62. We attribute the earnings beat to elevated operating margins, which we expect will normalize in the coming quarters. Overall, we are not concerned about the revenue miss, as the first quarter is seasonally soft from a new sales perspective and we expect higher pricing to take effect next quarter. Organic annual subscription value grew 8.8%, a downtick from 9.3% in the prior quarter but still a healthy result. FactSet maintained its fiscal 2023 outlook for GAAP revenue of $2.100 billion-$2.115 billion, adjusted EPS of $14.50-$14.90, and adjusted operating margins of 34%-35%. On balance, there was little in the first-quarter earnings release that would alter our long-term view of the firm, and we will maintain our narrow moat rating and $365 fair value estimate.

FactSet has built an attractive subscription-based business providing data and analytics to the financial-services industry. FactSet is best known for its research solutions, which include its core desktop offering geared toward buy-side asset managers and sell-side investment bankers. Research is the largest component of the firm’s annual subscription value but is FactSet’s slowest-growing segment due to its maturity and pressures on asset managers. Beyond research, FactSet offers analytics and trading solutions (32% of firm ASV), which include portfolio analytics, risk management, performance reporting, trade execution, and order management.

Narrow-moat-rated FactSet reported a mixed end to its fiscal 2022. On the one hand, revenue grew 10% organically to $499 million, which beat the FactSet consensus estimate of $487 million. On the other hand, adjusted EPS of $3.13 missed the consensus estimate of $3.21 as operating margins were flat from the year-ago period despite the inclusion of the higher-margin CUSIP business in the quarter. Shares of FactSet were down about 7% after the firm’s earnings call, which we attribute to the margin outlook disappointing some investors and investors being less forgiving at the firm’s current valuation. However, we are increasing our fair value estimate to $365 from $340 due to a higher revenue outlook and time value of money partially offset by tempering our operating margin expansion expectations.

Over the years, FactSet has built up an attractive subscription-based business providing data and analytics to the financial-services industry. FactSet is best known for its research solutions, which include its core desktop offering geared toward buy-side asset managers and sell-side investment bankers. Research makes up about 41% of the firm’s annual subscription value, or ASV, but is FactSet’s slowest growing segment due to its maturity and pressures on asset managers. Beyond research, FactSet offers analytics and trading solutions (35% of firm ASV), which include portfolio analytics, risk management, performance reporting, trade execution, and order management.

FactSet reported strong fiscal third-quarter financial results. Revenue of $489 million beat the FactSet consensus of $479 million and represented organic revenue growth of 10.5%, an acceleration from the 9.9% seen in the prior quarter. Adjusted EPS of $3.76 easily beat the FactSet consensus of $3.22, though some of this might be consensus not reflecting the outsized margin improvement from its recent acquisition of CUSIP Global Services and a lower tax rate. Though FactSet is performing well, we previously increased our forecasts, and this quarter’s results do not materially change our long-term view of the narrow-moat firm. As a result, we will maintain our fair value estimate of $340 per share and regard the firm’s shares as modestly overvalued.

Over the years, FactSet has built up an attractive subscription-based business providing data and analytics to the financial-services industry. FactSet is best known for its research solutions, which include its core desktop offering geared toward buy-side asset managers and sell-side investment bankers. Research makes up about 41% of the firm’s annual subscription value, or ASV, but is FactSet’s slowest growing segment due to its maturity and pressures on asset managers. Beyond research, FactSet offers analytics and trading solutions (35% of firm ASV), which include portfolio analytics, risk management, performance reporting, trade execution, and order management.

Over the years, FactSet has built up an attractive subscription-based business providing data and analytics to the financial-services industry. FactSet is best known for its research solutions, which include its core desktop offering geared toward buy-side asset managers and sell-side investment bankers. Research makes up about 41% of the firm’s annual subscription value, or ASV, but is FactSet’s slowest growing segment due to its maturity and pressures on asset managers. Beyond research, FactSet offers analytics and trading solutions (35% of firm ASV), which include portfolio analytics, risk management, performance reporting, trade execution, and order management.

Narrow-moat rated FactSet reported a solid fiscal second quarter. Organic revenue grew 9.9%, an acceleration from the 9.1% reported in the prior quarter. Revenue and adjusted EPS beat the FactSet consensus by 1% and 10%, respectively, and we believe a sizable portion of the earnings beat was due to a lower-than-expected tax rate. FactSet also tweaked its 2022 revenue and earnings outlook higher. We are raising our fair value estimate on FactSet’s shares to $340 from $316 as we incorporate FactSet’s strong results and its acquisition of CUSIP Global Services. We regard FactSet’s shares as modestly overvalued.

Over the years, FactSet has built up an attractive subscription-based business providing data and analytics to the financial-services industry. FactSet is best known for its research solutions, which include its core desktop offering geared toward buy-side asset managers and sell-side investment bankers. Research makes up about 41% of the firm’s annual subscription value, or ASV, but is FactSet’s slowest growing segment due to its maturity and pressures on asset managers. Beyond research, FactSet offers analytics and trading solutions (35% of firm ASV), which include portfolio analytics, risk management, performance reporting, trade execution, and order management.