Integrated financial information provider, FactSet Research Systems Inc. (FDS) reported a drop in profits for the second quarter, but beat analysts earnings estimates on Tuesday.
The Norwalk, CT based company reported second quarter earnings of $44.54 million, or $1.00 per share, down -4% from $46.75 million, or $1.02 per share last year. Excluding special items, earnings rose by 8% to $50.6 million, or $1.14 per share, from $46.75 million, or $1.02 per share last year. Analysts had estimated $1.11 per share in adjusted earnings.
Revenue for the quarter increased to $213.08 million, from $199.37 million last year. Analysts expected to see revenue of $213.31 million.
Philip Hadley, chairman and CEO of FactSet commented, “while we were pleased to achieve ASV growth of $17.3 million in the quarter, we continue to operate in a challenging sell-side environment. Our second quarter results include growing adjusted EPS by 12% and free cash flow by 11%.”
Looking ahead, the company estimates third quarter earnings to be between $1.14 and $1.16 per share, which would beat analysts estimate of $1.13 per share. FDS expects Q3 revenue to be in the range of $213 million to $216 million, while analysts are looking for $216.99 million in revenue.
FactSet shares were down -$1.91, or -1.95% during premarket trading Tuesday. The stock has been mostly flat in the past year.
The Bottom Line
Shares of FactSet Research Systems Inc. (FDS) have 1.26% yield, based on Monday’s closing price of $98.03.
FactSet Research Systems Inc. (FDS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.