FactSet Research Q2 Profit Rises; Philip Hadley To Step Down As CEO

(RTTNews) - FactSet Research Systems Inc. (FDS), provider of integrated global financial information and analytical applications to the investment community, reported that its net income for the second quarter of fiscal 2015 rose to $61.6 million from $52.4 million a year ago. Earnings per share were $1.46 compared to $1.22 in the same period of fiscal 2014.

FactSet also announced that Chairman and CEO, Philip Hadley, will step down after a successful tenure as CEO, but will remain with the Company as Chairman of the Board of Directors. Hadley, 52, has served as FactSet's CEO since September 2000.

The Company's current President, 19-year FactSet veteran Philip Snow, will become FactSet's next CEO, effective July 1, 2015. Snow has also been elected to FactSet's Board of Directors, effective March 16, 2015.

Adjusted earnings per share rose 13.9% to $1.39 from $1.22 in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.40 per share for the quarter. Analysts' estimates typically exclude special items.

Adjusted diluted EPS excludes the net effect of the $0.12 benefit from the reenactment of the U.S. Federal R&D tax credit and the $0.05 detriment from the senior leadership changes within the sales organization.

Quarterly revenues advanced to $247.8 million, up 9.2% over the prior year. Included in this total was $0.5 million related to the acquisition of Code Red, Inc. Wall Street expected revenues of $246.68 million.

Annual Subscription Value or ASV was $1.005 billion at February 28, 2015, up 8.5% organically over the prior year. Excluding $9.3 million from the acquisition of Code Red and the effects of foreign currency, ASV increased $25.4 million over the last three months.

FactSet also announced the promotion of Mark Hale to Chief Operating Officer, effective March 16, 2015. Mark joined FactSet as a software engineer from Carnegie Mellon in 1995. During his 20-year tenure at FactSet, Mark has held several positions of increasing responsibility including Head of Software Engineering, and most recently, Senior Vice President, Director of Content Operations.

Peter Walsh, FactSet's former COO, will work with Mark to ensure a successful transition. Walsh will continue as a full-time employee until August 31, 2015, after which he will remain employed on a part-time basis focusing on various growth projects.

For the third quarter of fiscal 2015, revenues are expected to range between $251 million and $256 million. Earnings per share is expected to be between $1.40 and $1.42. The midpoint of this range represents 12.8% growth over the prior year. Analysts expect the company to report earnings of $1.39 per share and revenues of $251.57 million for the third-quarter.