FactSet Research Systems Inc.
) reported first quarter 2013 earnings per share (EPS) of $1.14,
ahead of the Zacks Consensus Estimate of $1.10.
FactSet reported total revenue of $211.1 million in the first
quarter of 2013, up 7.5% from $196.4 million in the year-ago
quarter. This includes $2.7 million contribution from the
The number of users for FactSet increased by 105 during the
first quarter to 49,605 professionals. This can be attributed to
the additions in buy-side clients, partially offset due to a drop
from the sell-side.
The company generated U.S. revenues of $143.9 million, up 7.0%
year on year. Non-U.S. revenues improved 8.3% year on year to
Annual Subscription Value
Annual Subscription Value
(ASV) increased by $5.0 million organically during first quarter.
Total ASV was $847 million, increasing 7.0% from the year-ago
period. Out of the total ASV, 81% was derived from the buy-side
clients and the remaining portion was contributed by the
sell-side firms, performing M&A advisory work and equity
FactSet's revenue growth rate was below the growth rate of
operating expenses. This led to a 30 basis points decline in
operating margin. Operating margin was 33.7% in the quarter
versus 34.0% in the year-ago quarter. The decline was
attributable to the higher expenses that were incurred for
increasing number of employees and consulting professionals
coupled with increase in headcount in content operations and
Net income during the quarter came in at $49.8 million, up
22.9% from $45.5 million in the year-ago period. On a
fully-diluted basis, quarterly EPS was $1.11 versus 99 cents in
the year-ago quarter. Adjusted net income (excluding amortization
of intangible assets from acquisitions, but including stock based
compensation) of $1.14 per share was ahead of the year-ago
quarter's $1.10 per share.
Balance Sheet, Cash Flow
FactSet exited the quarter with $210.7 million in cash and
cash equivalents, compared with $189.0 million in the previous
quarter. The company has no long-term debt. The company generated
cash flow from operations of $50.6 million, down from $51.0
million in the previous quarter.
For the second quarter, the company expects revenues to be in
the range of $212.0 million to $215.0 million. Moreover, the
operating margin is projected between 33.5% and 34.0%.This apart,
the GAAP diluted EPS is expected to be in the range of $1.11 to
FactSet reported decent first quarter 2013 results by beating
the Zacks Consensus Estimate on bottom line. The company's
revenue growth was supported by an increase in the number of
users, which in turn improved the business volume. The company
witnessed revenue growth across its business segments.
The company continues to launch new products and application
across its segments with special emphasis on financial services
to gain more customers.
Although new products and services are offered by the company
regularly, we believe adding new customers is a challenge as the
European weakness has resulted in a slowdown of business activity
in the region. Moreover, FactSet faces stiff competition from
), which is also coming up with new solutions to increase its
FactSet carries a Zacks #3 Rank, implying a short-term Hold
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