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FactSet (FDS) to Post Q1 Earnings: What's in the Offing?

Zacks Equity Research

FactSet Research Systems Inc. FDS is scheduled to report first-quarter fiscal 2020 results on Dec 19, before the bell.

The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all of the trailing four quarters, with a positive surprise of 5.7%, on average.

The stock has gained 26.2% over the past year, underperforming the 44.4% growth of the industry it belongs to.

Expectations This Time Around

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues stands at $367.4 million, indicating year-over-year growth of 4.5%. Higher sales of analytics, wealth management, and content and technology solutions (CTS) are likely to have benefited the top line.  In fourth-quarter fiscal 2019, revenues of $364.3 million increased 5.3% year over year.

FactSet Research Systems Inc. Revenue (TTM)

 

FactSet Research Systems Inc. Revenue (TTM)

FactSet Research Systems Inc. revenue-ttm | FactSet Research Systems Inc. Quote

 

The consensus mark for earnings is pegged at $2.42, indicating year-over-year growth of 3%. Higher revenues and operating efficiency are expected to have boosted the bottom line. In the fourth quarter of fiscal 2019, adjusted earnings of $2.61 increased 18.6% year over year.

What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for FactSet this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

FactSet has an Earnings ESP of -1.27% and a Zacks Rank #2.

Stocks to Consider

Here are a few stocks that investors may consider as our model shows that these have the right combination of elements to beat on first-quarter fiscal 2020 earnings:

The Simply Good Foods Company (SMPL) has an Earnings ESP of +4.76% and a Zacks Rank #1. The company is slated to report results on Jan 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Winnebago Industries (WGO) has an Earnings ESP of +11.70% and a Zacks Rank #3. The company is slated to report results on Dec 20.

Commercial Metals Company (CMC) has an Earnings ESP of +21.62% and a Zacks Rank #3. The company is slated to report results on Dec 20.

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FactSet Research Systems Inc. (FDS) : Free Stock Analysis Report
 
Winnebago Industries, Inc. (WGO) : Free Stock Analysis Report
 
Commercial Metals Company (CMC) : Free Stock Analysis Report
 
The Simply Good Foods Company (SMPL) : Free Stock Analysis Report
 
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