FactSet reports lower than expected earnings and revenue in fiscal Q2

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Mar 30, 2021
  • FactSet reports lower than expected earnings and revenue in fiscal Q2.
  • The financial data firm expects up to £1.16 billion of revenue this year.
  • FactSet adds £149.79 million to its share repurchase programme.

FactSet Research Systems Inc. (NYSE: FDS) published its earnings report for the fiscal second quarter on Tuesday that missed market expectations for earnings and revenue.

FactSet shares opened a little under 3% down on Tuesday and lost another 1% on market open. Including the price action, the stock is now trading at a per-share price of £227. In comparison, FactSet Research Systems had started the year 2021 at a higher £240.39 per share.

FactSet’s Q2 financial results versus analysts’ estimates

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FactSet said that its net income in the second quarter printed at £70.24 million that translates to £1.82 per share. Adjusted for non-recurring items, the software company earned £1.98 per share versus the year-ago figure of £1.85 per share.

As per the financial data firm, it generated £284.90 million of revenue in Q2. In the same quarter last year, its revenue was capped at a lower £268.89 million. In the prior quarter (Q1), FactSet had registered £290.47 million of revenue.

In comparison, experts had forecast the company to post a higher £285.19 million of revenue in the recent quarter. Their estimate for adjusted per-share earnings stood at £1.99. Adjusted operating margin, the NYSE-listed company said, jumped to 32.6% in the second quarter – an increase from 31.8% last year.

In separate news from the United States, PayPal launched a crypto checkout service on Tuesday.

FactSet’s guidance for the full financial year

For the full financial year, FactSet now forecasts its earnings to fall between £7.82 per share and £8.11 per share. The Norwalk-based company expects up to £1.16 billion of revenue this year. The Board of Directors widened the company’s share repurchase programme by £149.79 million on Tuesday.

CEO Phil Snow commented on the financial update on Tuesday and said:

“I am proud of how we executed this quarter, resulting in a solid first half of our fiscal 2021. In our second quarter, we saw a number of key wins validating our strategy for long-term growth. Our focus on digital transformation, content expansion, and being an open platform continues to resonate with our clients as they navigate a rapidly evolving landscape.”

FactSet Research Systems performed fairly upbeat in the stock market last year with an annual gain of more than 20%. At the time of writing, the American financial data and software company is valued at £8.94 billion and has a price to earnings ratio of 32.95.

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