FDS Stock Barely Moves After Posting Q2 Earnings Beat, Revenue Rise

FactSet (FDS Quick QuoteFDS – Free Report) has reported the results for the second quarter of fiscal 2025, with earnings surpassing the Zacks Consensus Estimate but revenues meeting the same.

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The stock price has not witnessed any significant impact of the earnings beat since the company released results on March 20.

FDS’s earnings per share (excluding 52 cents from non-recurring items) of $4.28 beat the consensus mark by 2.2% and increased 1.4% from the year-ago quarter. Revenues of $570.7 met the Zacks Consensus Estimate but gained 4.5% from the year-ago quarter.

The company’s shares have lost 5.2% in the past six months compared with the 7.1% fall of the industry it belongs to and the 1.1% decline of the Zacks S&P 500 composite.

FactSet Research Systems Inc. Price, Consensus and EPS Surprise

 

FactSet’s Revenues in Detail

Organic revenues increased 4% year over year to $568 million. Region-wise, organic revenue growth was 4% for the Americas, 3.1% for the EMEA, and 6.8% for the Asia Pacific.

Revenues generated from the Americas segment were $369.7 million, up 4.8% from the year-ago quarter, surpassing our expectation of $367.6 million. Revenues from the EMEA were $143.4 million, an increase of 3% from the year-ago quarter. The figure missed our projection of $145 million. Revenues from the Asia Pacific were $57.6 million, marking 6.5% growth on a year-over-year basis, outpacing our estimate by a slight margin.

FDS’s ASV Plus Professional Services

FactSet’s Annual Subscription Value (“ASV”) plus professional services were $2.3 billion. Organic ASV plus professional services were $2.3 billion, up 4.1% from the year-ago quarter. The buy-side organic ASV growth rate was 4.1% and the sell-side organic ASV growth rate was 2.2%. Nearly 82% of organic ASV was generated by the buy-side and the rest by sell-side firms.

Organic ASV generated from the United States was $1.5 billion, increasing 4.4% from the year-ago quarter. Organic ASV from the EMEA was $571.4 million, gaining 2.6% year over year. Organic ASV from the Asia Pacific was $229.9 million, up 6.8% on a year-over-year basis.

FactSet added 396 clients in the second quarter of fiscal 2025, driven by corporates, including clients from the Irwin buyout, taking the total to 8,645. The annual client retention rate was 91%.

FactSet’s Operating Results

The adjusted operating income was $212.7 million, which increased 1.6% from the year-ago quarter and beat our estimate of $210.3 million. The adjusted operating margin of 37.3% gained 100 basis points from the year-ago quarter.

FDS’ Balance Sheet & Cash Flow

The company exited the quarter with a cash and cash-equivalent balance of $278.5 million compared with $289.2 million in the first quarter of fiscal 2025. The long-term debt was $1.5 billion compared with $1.3 billion in the preceding quarter.

FDS generated $174 million in cash from operating activities. However, its capital expenditure was $23.7 million. The free cash flow utilized was $150.2 million.

FY25 Guidance for FactSet

For fiscal 2025, the company updated its revenue expectation to $2.305-$2.325 billion from the preceding quarter’s view of $2.285-$2.305 billion. The mid-point of the guided range ($2.315 billion) is slightly higher than the Zacks Consensus Estimate of $2.31 billion.

FDS anticipates earnings per share of $16.8-$17.4. The guided range’s mid-point ($17.1) is in line with the consensus estimate. The adjusted operating margin is projected to be 36-37%.

FactSet carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Accenture plc (ACN Quick QuoteACN – Free Report) posted mixed second-quarter fiscal 2025 results.

ACN’s earnings were $2.82 per share, missing the Zacks Consensus Estimate by a slight margin. The metric increased 1.8% from the year-ago quarter. Total revenues of $16.7 billion beat the consensus estimate by a slight margin but gained 5.4% on a year-over-year basis.

S&P Global Inc. (SPGI Quick QuoteSPGI – Free Report) reported impressive fourth-quarter 2024 results.

SPGI’s adjusted earnings per share (EPS) of $3.77 surpassed the Zacks Consensus Estimate by 9.6% and gained 20.4% year over year. Revenues of $3.6 billion beat the consensus estimate by 2.9% and grew 15.1% year over year.