FactSet Research Q4 Profit Misses View, But Revenues Top

(RTTNews) - Financial data provider FactSet Research Systems, Inc. (FDS) reported Tuesday a profit for the fourth quarter that increased from last year as the company continued to add subscribers.

Adjusted earnings per share missed analysts' expectations by a penny, while quarterly revenues topped their estimates. The company also provided first-quarter earnings guidance, in line with Street view, and revenue forecast just below estimates.

"We are excited to report fourth quarter results that include ASV growth of $25 million and adjusted EPS growth of 11%. FactSet accelerated from growth in all geographies and across each user vertical," Chairman and CEO Philip Hadley said in a statement.

The Norwalk, Connecticut-based company reported net income of $51.0 million or $1.16 a share for the fourth quarter, higher than $48.54 million or $1.08 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $52.84 million or $1.20 per share, compared to $48.54 million or $1.08 per share in the year-ago quarter.

On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $1.21 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter increased 6 percent to $219.33 million from $207.66 million in the same quarter last year, and topped eight Wall Street analysts' consensus estimate of $218.93 million by a whisker.

U.S. revenues for the quarter grew 6 percent to $149.9 million, and international revenues were up 5 percent or 6 percent in constant currency, to $69.4 million from the prior-year quarter.

Annual Subscription Value or ASV for the fourth quarter increased 6 percent organically to $888 million from last year. ASV from FactSet's U.S. operations was $606 million, and $282 million were related to international operations.

ASV represents the forward-looking revenues for the next 12 months from all annual subscription services currently being supplied to clients.

Client count at the end of the fourth quarter totaled 2,500, a net increase of 60 clients during the quarter, the largest quarterly growth since 2006. Annual client retention rate was greater than 95 percent of ASV and 92 percent of clients.

Operating margin for the quarter was 32.2 percent, and adjusted operating margin contracted 60 basis points to 33.4 percent from last year as total operating expenses increased to $148.80 million from $137.04 million last year.

For fiscal 2013, FactSet Research reported net income of $198.64 million or $4.45 per share, higher than $188.81 million or $4.12 per share in the prior year. Analysts expected the company to report earnings of $4.65 per share for fiscal 2013.

Revenues for the full year grew to $858.11 million from $805.79 million in the previous year. Street was looking for full-year 2013 revenues of $857.90 million.

Looking ahead to the first quarter of fiscal 2014, FactSet expects earnings in a range of $1.21 to $1.24 per share, on projected revenues between $222 million and $225 million.

Analysts expect the company to report earnings of $1.23 per share on revenues of $225.04 million for the quarter.

"We continue to expand the depth and breadth of our product suites and invest to capture an attractive forward opportunity, as evidenced by our employee growth this quarter," Hadley added.

FDS closed Monday's regular trading session at $112.25, down $0.25 on a volume of 0.67 million shares. In the past 52-week period, the stock has been trading in a range of $86.88 to $113.05.