FactSet tops analysts’ estimates for earnings and revenue in fiscal Q1

FactSet Research Systems Inc. (NYSE: FDS) reported its financial results for the fiscal first quarter on Monday that topped analysts’ estimates for earnings and revenue. The financial data company acquired Truvalue Labs Inc. (AI-driven ESG data company) in November.

FactSet shares slid 1% in premarket trading on Monday and lost another 3% on market open. On a year-to-date basis, the stock, that has been volatile this year due to the ongoing COVID-19 crisis, is now roughly 25% up after an over 60% recovery since March.

FactSet’s Q1 financial results versus analysts’ estimates

FactSet said that it earned £2.15 per share in the first quarter versus the year-ago figure of £1.93 per share. In comparison, the Zacks Consensus estimate for the software company’s per-share earnings in the recent quarter stood at £2.05. It was the fourth time in a row for FactSet to record better than expected quarterly earnings per share.

In terms of revenue, the Norwalk-based company posted £290.47 million of revenue in Q1 as compared to a lower £274.35 million in the same quarter last year. Zack Consensus estimate for FactSet’s revenue in the recent quarter stood at a slightly lower £289.84 million.

In separate news from the United States, Lockheed Martin said on Monday that it will acquire Aerojet Rocketdyne for £3.30 billion.

Chief Executive Phil Snow’s comments on Monday

Chief Executive Phil Snow of FactSet commented on the earnings report on Monday and said:

“We have more conviction in our end markets than we did when we started the fiscal year. Our pipeline remains robust, built on the investments we are making in content and technology. The number and depth of conversations we are having with our largest clients around digital transformation, and how we can help streamline their workflows, position us well as we enter our second quarter.”

As of 30^th November, FactSet said that its ASV (annual subscription value) plus professional services stood at £1.17 billion versus £1.11 billion last year. Operating margin, the U.S. company added, also jumped in the fiscal first quarter to 31.2% versus 30.9% in the comparable quarter of 2019. FactSet refrained from giving future guidance on Monday.

The U.S. financial data and software company performed largely upbeat in the stock market last year with an annual gain of more than 30%. At the time of writing, FactSet is valued at £9.51 billion and has a price to earnings ratio of 34.68.