Analyst Note
| Rajiv Bhatia, CFA |Narrow-moat rated FactSet finished its fiscal year on a high note with results topping consensus expectations. Adjusted revenue of $412 million and adjusted earnings per share of $2.88 topped the FactSet consensus of $405 million and $2.73, respectively. More importantly, the firm’s annual subscription growth accelerated to 7.2% and its initial fiscal 2022 outlook beat expectations. We attribute the firm’s growth to a favorable selling environment, as the equity bull market is helping asset managers, and strong merger and acquisition volumes at investment banks are leading to higher head count in that channel. In addition, we believe the firm’s offerings are resonating and thus FactSet is growing from the addition of new logos. We expect to raise our fair value estimate within a 5%-15% range; while this was a great quarter with sales momentum, we still view the firm’s shares as pricey.