FactSet Research Systems Inc. (NYSE: FDS) has announced strong financial results for the fourth quarter of fiscal 2024, exceeding analyst expectations. The company’s revenue grew by 4.9% year-over-year to $562.2 million, surpassing the consensus estimate of $546.81 million. This growth was driven by a 5.0% increase in organic revenue, reaching $562.8 million, primarily due to strong performance across wealth management, banking, institutional asset managers, and asset owners.
FactSet’s adjusted earnings per share (EPS) for the quarter also beat expectations, coming in at $3.74 compared to the consensus estimate of $3.62. The company’s client base expanded significantly, with a net increase of 188 clients in the past three months, bringing the total client count to 8,217 as of August 31. This increase was primarily driven by new clients in the wealth management, corporate, hedge fund, and partner segments. The company defines clients as those with Annual Subscription Values (ASVs) of $10,000 or more.
FactSet’s profitability also saw improvement. Adjusted operating margin expanded to 35.8%, representing a 240 basis point year-over-year increase. However, adjusted EBITDA declined slightly by 0.4% to $170.5 million. As of August 31, 2024, FactSet held $492.6 million in cash and equivalents.
Phil Snow, CEO of FactSet, commented on the results, stating, “During a time of technological change and an external environment marked by both uncertainty and opportunity, FactSet’s open platform strategy is resonating with clients seeking growth and efficiency.”
Looking ahead, FactSet has projected a fiscal 2025 revenue outlook of $2.285 billion to $2.305 billion, surpassing the consensus estimate of $2.301 billion. The company also expects adjusted EPS to be in the range of $16.80 to $17.40, compared to the consensus estimate of $17.36.
In the last 12 months, FactSet Research Systems stock has gained 5%. As of Thursday’s premarket trading, FDS stock was up 0.01% at $446.85.
