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FactSet's (FDS) Earnings and Revenues Beat Estimates in Q2

·4 min read

FactSet Research Systems Inc. FDS reported better-than-expected second-quarter fiscal 2022 results.

Adjusted earnings per share of $3.27 beat the Zacks Consensus Estimate by 10.5% and increased 20.2% year over year. The bottom line was driven by higher revenues and a decreased tax rate.

FactSet’s revenues of $431.1 million in the quarter surpassed the Zacks Consensus Estimate by 1% and increased 10% year over year. The uptick was driven by higher sales of analytics, and research and advisory solutions.

The company’s shares have gained 31.9% over the past year against 6.2% decline of the industry it belongs to.

Revenues in Detail

Organic revenues increased 9.9% year over year to $430.8 million. Region-wise, organic revenue growth from Americas, EMEA and Asia Pacific was 10.3%, 9.5% and 13.7%, respectively.

ASV Plus Professional Services

FactSet’s Annual Subscription Value (“ASV”) plus professional services were $1.8 billion, up 9.5% year over year. Buy-side and sell-side ASV growth rates were 8.4% and 12.6%, respectively. Organic ASV plus professional services were $1.7 billion, up 9.4% from the prior-year quarter. Nearly 84% of organic ASV was generated by buy-side and the rest by sell-side firms.

Organic ASV generated from the United States was $1.1 billion, up 9.6% from the prior-year quarter’s level. Organic ASV from the EMEA and Asia Pacific regions was $459.6 million and 180.9 million, up 7.8% and 14.3% year over year, respectively. FactSet added 413 clients in the reported quarter, driven by an increase in corporate clients, taking the total to 7,172. The annual client retention rate was 92%. At the end of the quarter, the total employee count was 10,784, up 1.2% year over year.

Operating Results

Adjusted operating income came in at $145.1 million, up 13.5% from the year-ago quarter’s reported figure. Adjusted operating margin increased to 33.7% from 32.6% in the year-ago quarter. Selling, general and administrative expenses increased 35.2% to $108.4 million. Total operating expenses increased 11.7% to $307.8 million.

Balance Sheet and Cash Flow

FactSet exited the quarter with cash and cash equivalents balance of $773 million compared with $673.9 million in the previous quarter. Long-term debt was $574.6 million, flat with the prior-quarter figure. In the reported quarter, the company generated $122 million of cash from operating activities, while capital expenditures were $12 million. Free cash flow was $110.1 million.

FactSet currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

FactSet Research Systems Inc. Price, Consensus and EPS Surprise

FactSet Research Systems Inc. Price, Consensus and EPS Surprise
FactSet Research Systems Inc. Price, Consensus and EPS Surprise

FactSet Research Systems Inc. price-consensus-eps-surprise-chart | FactSet Research Systems Inc. Quote

Performance of Some Other Business Services Companies

Automatic Data Processing ADP reported better-than-expected second-quarter fiscal 2022 results. Adjusted EPS of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.

Total revenues of $4.03 billion beat the consensus mark by 1.1% and increased 9% year over year. Automatic Data Processing currently carries a Zacks Rank #2 (Buy).

Robert Half RHI reported fourth-quarter 2021 earnings of $1.51 per share, which beat the consensus mark by 5.6% and rose 79.8% year over year.

Revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis. Robert Half International currently carries a Zacks Rank #2.

Rollins ROL reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share met the Zacks Consensus Estimate and increased 7.7% year over year.

Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. Rollins currently carries a Zacks Rank #3.


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