FactSet Q3 Profit Declines, Names Phil Snow President - Update

(RTTNews) - Financial data provider FactSet Research Systems, Inc. (FDS) Tuesday reported a decline in third-quarter profit, reflecting higher operating expenses and tax provision. Revenues, however, increased 8 percent and topped analysts' expectations. The company also forecast fourth-quarter earnings above view.

FactSet also announced that it has appointed Phil Snow as president, effective July 1, 2014, who would report to Chairman and CEO Philip Hadley. Snow joined the company in 1996 and is currently senior vice president, Director of U.S. Investment Management Sales.

FactSet's Executive Vice Presidents, Michael Frankenfield and Peter Walsh, will remain in their current roles, both reporting to Snow.

For the third quarter ended May 31, the company's net income decreased to $51.53 million from $53.37 million in the previous year. Meanwhile, earnings per share increased to $1.21 from $1.20 per share a year ago on lower share count. Adjusted earnings for the recent quarter were $1.25 per share, while the firm posted $1.13 per share last year.

On average, 15 analysts polled by Thomson Reuters expected earnings per share of $1.25 for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter advanced 8 percent to $231.76 million from $214.61 million in the same quarter last year. Analysts estimated revenues of $230.66 million for the quarter.

U.S. revenues increased 6 percent to $156.3 million. Non-U.S. revenues were $75.5 million. Excluding incremental revenue from acquisition of Matrix and impact of foreign currency, international growth rate was 8 percent.

Annual Subscription Value or ASV totaled $932 million at May 31, up 7 percent organically. ASV represents the forward-looking revenues for the next 12 months from all services currently being supplied to clients.

Client count rose 30 and totaled 2,662 as at May 31, 2014.

Total operating expenses grew to $158.72 million from $142.98 million a year earlier. Provision for income taxes rose to $21.84 million from $18.63 million a year earlier.

Looking ahead to the fourth quarter, the company expects earnings per share to be in the range of $1.30 to $1.32 a share. Revenues are anticipated to be between $235 million and $240 million.

Analysts project fourth-quarter earnings of $1.29 per share, on revenues of $235.60 million.

FDS closed Monday's regular trading at $113.01, up 0.22 percent.