Shares of FactSet Research Systems (NYSE: FDS) fell on Thursday, declining 11% as of 11:55 a.m. EDT.
The financial information provider's decline followed the company's fiscal fourth-quarter results. While the top- and bottom-line metrics for its fourth quarter of 2019 were above analysts' consensus forecasts, management's outlook for fiscal 2020 was softer than expected.
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Revenue increased 5.3% year over year to $364.3 million, coming in ahead of analysts' average forecast for revenue of $362.6 million. Adjusted earnings per share for the period rose 18.6% year over year to $2.61. This was also better than a consensus analyst estimate for $2.47.
But the company's fiscal 2020 guidance missed the mark -- at least compared with what analysts were expecting. For the full fiscal year, FactSet said it expected revenue to be between $1.49 billion and $1.5 billion and adjusted EPS to be between $9.85 and $10.15. On average, analysts were expecting fiscal 2020 revenue and adjusted EPS of $1.51 billion and $10.52, respectively.
Explaining the company's lower-than-expected guidance for fiscal 2020 earnings per share, CEO Phil Snow said the company plans to "accelerate critical investments over the next three years from a position of strength, capitalizing on industry trends and enhancing our core offerings." Snow believes these timely investments will ultimately drive long-term value for shareholders.
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