FactSet's 1Q EPS Beats Estimates - Analyst Blog
20 Dezembro 2012 - 11:31AM
Zacks
FactSet Research Systems Inc. (FDS) reported
first quarter 2013 earnings per share (EPS) of $1.14, ahead of the
Zacks Consensus Estimate of $1.10.
Revenue
FactSet reported total revenue of $211.1 million in the first
quarter of 2013, up 7.5% from $196.4 million in the year-ago
quarter. This includes $2.7 million contribution from the
StreetAccount.
The number of users for FactSet increased by 105 during the
first quarter to 49,605 professionals. This can be attributed to
the additions in buy-side clients, partially offset due to a drop
from the sell-side.
The company generated U.S. revenues of $143.9 million, up 7.0%
year on year. Non-U.S. revenues improved 8.3% year on year to $67.2
million.
Annual Subscription Value
Annual Subscription Value (ASV) increased by
$5.0 million organically during first quarter. Total ASV was $847
million, increasing 7.0% from the year-ago period. Out of the total
ASV, 81% was derived from the buy-side clients and the remaining
portion was contributed by the sell-side firms, performing M&A
advisory work and equity research.
Operating Results
FactSet’s revenue growth rate was below the growth rate of
operating expenses. This led to a 30 basis points decline in
operating margin. Operating margin was 33.7% in the quarter versus
34.0% in the year-ago quarter. The decline was attributable to the
higher expenses that were incurred for increasing number of
employees and consulting professionals coupled with increase in
headcount in content operations and StreetAccount employees.
Net income during the quarter came in at $49.8 million, up 22.9%
from $45.5 million in the year-ago period. On a fully-diluted
basis, quarterly EPS was $1.11 versus 99 cents in the year-ago
quarter. Adjusted net income (excluding amortization of intangible
assets from acquisitions, but including stock based compensation)
of $1.14 per share was ahead of the year-ago quarter’s $1.10 per
share.
Balance Sheet, Cash Flow
FactSet exited the quarter with $210.7 million in cash and cash
equivalents, compared with $189.0 million in the previous quarter.
The company has no long-term debt. The company generated cash flow
from operations of $50.6 million, down from $51.0 million in the
previous quarter.
Guidance
For the second quarter, the company expects revenues to be in
the range of $212.0 million to $215.0 million. Moreover, the
operating margin is projected between 33.5% and 34.0%.This apart,
the GAAP diluted EPS is expected to be in the range of $1.11 to
$1.13.
Our Take
FactSet reported decent first quarter 2013 results by beating
the Zacks Consensus Estimate on bottom line. The company’s revenue
growth was supported by an increase in the number of users, which
in turn improved the business volume. The company witnessed revenue
growth across its business segments.
The company continues to launch new products and application
across its segments with special emphasis on financial services to
gain more customers.
Although new products and services are offered by the company
regularly, we believe adding new customers is a challenge as the
European weakness has resulted in a slowdown of business activity
in the region. Moreover, FactSet faces stiff competition from
MSCI Inc. (MSCI), which is also coming up with new
solutions to increase its market share.
FactSet carries a Zacks #3 Rank, implying a short-term Hold
rating.
FACTSET RESH (FDS): Free Stock Analysis Report
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