FactSet Research Systems Inc Q2 Earnings Rise; Misses Estimates (FDS)

Shares of financial research company FactSet Research Systems Inc. (FDS) were down on Tuesday morning after the company reported quarterly earnings below analysts’ views. 

FDS Earnings in Brief

FDS reported Q2 earnings of $52.43 million, or $1.22 per share, up from $44.54 million, or $1.00 per share, a year ago. Excluding special items, earnings were $52.43 million, or $1.22 per share,  up from $49.28 million, or $1.11, per share last year, but below analysts’ estimate of $1.21 per share. Revenue for the quarter rose to $226.93 million from $213.08 million last year. Analysts expected revenue of $226.36 million. Looking forward, FDS expects Q2 earnings to be between $1.24 and$1.26 per share, while analysts expect to see $1.26 per share. The company expects revenue to be between $229 million and $233 million, while analysts are estimating $228.70 million.

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CEO Commentary

Chairman and CEO Philip Hadley commented: ”Our second quarter results reflect an improving buy-side client base, and include acquiring the remaining 40% interest in Matrix. I’m pleased to see that our net client growth in the past three months was the highest quarterly total since 2006 and buy-side users grew at a level we’ve not seen since 2004.”

FDS Dividend

FDS paid its last quarterly dividend of 35 cents on March 18. We expect the company to declare its next dividend sometime in May. It is likely that shareholders will see an increased dividend next quarter.

Stock Performance 

FactSet shares were down $2.54, or 2.43%, during pre-market trading Tuesday. The stock is down 4% YTD.