FactSet Research Systems Earnings: Here’s Why Shares are Down Now

FactSet Research Systems Inc. (NYSE:FDS) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 4.46%.

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FactSet Research Systems Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 9.52% to $1.15 in the quarter versus EPS of $1.05 in the year-earlier quarter.

Revenue: Rose 6.07% to $214.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: FactSet Research Systems Inc. reported adjusted EPS income of $1.15 per share. By that measure, the company met the mean analyst estimate of $1.15. It missed the average revenue estimate of $214.94 million.

Quoting Management: “We again delivered double-digit diluted EPS growth and our free cash flow reached an all-time high of $92 million during the third quarter of fiscal 2013. Off-market conditions, especially on the sell-side, continue to interrupt client buying patterns and limited our ASV growth this quarter as expected,” said Philip A. Hadley, Chairman and CEO. “We continue to return capital to shareholders as evidenced by a 13% increase in our dividend and a $200 million expansion to our share repurchase program during the quarter.”

Key Stats (on next page)…

Revenue increased 0.71% from $213.08 million in the previous quarter. EPS increased 0.88% from $1.14 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.17 to a profit $1.18. For the current year, the average estimate has moved up from a profit of $4.57 to a profit of $4.65 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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