Analyst Note| Rajiv Bhatia |
Wide-moat FactSet reported solid fiscal first-quarter results with organic revenue increasing 5% and annual subscription value (ASV) plus professional services increasing 5% organically to $1.56 billion. Revenue of $388 million was roughly in line with the CapIQ consensus estimate, although adjusted earnings per share beat as operating margins improved. FactSet maintained its fiscal 2021 outlook that includes revenue in the $1.570 billion-$1.585 billion range, with adjusted EPS at $10.75-$11.15. Overall, there was little in FactSet’s fiscal first-quarter results that would materially alter our long-term view of the firm, and as a result we are maintaining our fair value estimate of $225 per share.