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FactSet FDS has reported the results for the second quarter of fiscal 2025, with earnings surpassing the Zacks Consensus Estimate but revenues meeting the same.
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The stock price has not witnessed any significant impact of the earnings beat since the company released results on March 20.
FDS’s earnings per share (excluding 52 cents from non-recurring items) of $4.28 beat the consensus mark by 2.2% and increased 1.4% from the year-ago quarter. Revenues of $570.7 met the Zacks Consensus Estimate but gained 4.5% from the year-ago quarter.
The company’s shares have lost 5.2% in the past six months compared with the 7.1% fall of the industry it belongs to and the 1.1% decline of the Zacks S&P 500 composite.
FactSet Research Systems Inc. Price, Consensus and EPS Surprise
FactSet Research Systems Inc. price-consensus-eps-surprise-chart | FactSet Research Systems Inc. Quote
FactSet’s Revenues in Detail
Organic revenues increased 4% year over year to $568 million. Region-wise, organic revenue growth was 4% for the Americas, 3.1% for the EMEA, and 6.8% for the Asia Pacific.
Revenues generated from the Americas segment were $369.7 million, up 4.8% from the year-ago quarter, surpassing our expectation of $367.6 million. Revenues from the EMEA were $143.4 million, an increase of 3% from the year-ago quarter. The figure missed our projection of $145 million. Revenues from the Asia Pacific were $57.6 million, marking 6.5% growth on a year-over-year basis, outpacing our estimate by a slight margin.
FDS’s ASV Plus Professional Services
FactSet’s Annual Subscription Value (“ASV”) plus professional services were $2.3 billion. Organic ASV plus professional services were $2.3 billion, up 4.1% from the year-ago quarter. The buy-side organic ASV growth rate was 4.1% and the sell-side organic ASV growth rate was 2.2%. Nearly 82% of organic ASV was generated by the buy-side and the rest by sell-side firms.
Organic ASV generated from the United States was $1.5 billion, increasing 4.4% from the year-ago quarter. Organic ASV from the EMEA was $571.4 million, gaining 2.6% year over year. Organic ASV from the Asia Pacific was $229.9 million, up 6.8% on a year-over-year basis.
FactSet added 396 clients in the second quarter of fiscal 2025, driven by corporates, including clients from the Irwin buyout, taking the total to 8,645. The annual client retention rate was 91%.
FactSet’s Operating Results
The adjusted operating income was $212.7 million, which increased 1.6% from the year-ago quarter and beat our estimate of $210.3 million. The adjusted operating margin of 37.3% gained 100 basis points from the year-ago quarter.