) reported decent first quarter 2012 earnings per share (
) of $1.01, just ahead of the Zacks Consensus Estimate by a
FactSet reported total revenue of $196.4 million in the first
quarter of 2012, up 12.9% from $173.3 million delivered in the
year-ago quarter. The company experienced strong growth in ASV
(Annual Subscription Value) from the company's portfolio analytics
suite of products.
The company also experienced an improvement in the number of PA
Workstations and the company's portfolio publishing product line.
U.S. revenues expanded 15.0% year over year to $132.0 million.
Non-U.S revenues rose 12% year over year to $60.0 million.
Annual Subscription Value
ASV increased 12.5% year-over-year to $782.0 million in the
first quarter. While the company's U.S operation contributed 68.0%
of the total ASV, international operation of the company generated
the remaining 32%.
The company's user count declined to 46,900 at the end of the
first quarter, from 48,100 in the prior quarter. This was mainly
due to lower subscriptions toward the sell-side firms. However,
with 34 new clients being added in the first quarter, the client
count increased to a total of 2,271.
FactSet's operating margin was 33.9% in the quarter, versus
34.3% in the year-ago quarter. The drop in operating margin was due
to the fact that operating expenses grew at a higher rate than
revenues. The increase in operating expense may be attributable to
higher cost of service and SG&A expenses, which was primarily a
result of incremental headcount.
Net income during the quarter came in at $45.5 million, up 9.5%
from $41.6 million reported in the year-ago period. On a
fully-diluted basis, quarterly EPS was 99 cents, up from 88 cents
reported in the year-ago quarter. Adjusted net income, (excluding
amortization of intangible assets from acquisitions, but including
stock based compensation) of $1.01 per share was higher than 91
cents per share reported in the year-ago quarter.
Balance Sheet & Cash Flow
FactSet exited the quarter with $193.7 million in cash and cash
equivalents, compared with $202.3 million in the previous quarter.
The company has no long-term debt.
During the first quarter, capital expenditures were $6.0
million, and $15.0 million was spent on share repurchases. At
quarter end, a total of $128 million remains authorized for future
The company expects second quarter fiscal 2012 revenues in the
range of $197.0 million to $200.0 million, which represents a year
over year growth of 11.0% to 13.0%, at each end of the range. This
apart, operating margin is expected to range between 33.7% and
34.2%. The company expects GAAP diluted EPS between 99 cents and
$1.01, whereas, the Non-GAAP diluted EPS should range between $1.10
FactSet reported decent first quarter result, with revenue
increasing on a year-over-year basis and earnings exceeding the
Zacks Consensus Estimates. The company is witnessing incremental
demand for its products in overseas and developing markets, which
helped raise the client count.
This apart, FactSet has a healthy cash balance. On the other
hand, the recent economic turmoil in the US and other European
markets could have a negative effect on the financial services
companies, thereby restricting spending on investment tools.
Moreover, FactSet faces competition from
), which might rationalize the growth prospects of the company in
the coming quarters.
FactSet holds a Zacks #3 Rank, implying a short-term Hold
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