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FactSet
🇺🇸 NYSE:FDS
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May 31, 2020

FactSet Q3 2020 Earnings Report

Reported solid results driven by operational discipline and execution in a volatile market.

Key Takeaways

FactSet reported a strong third quarter with revenue increasing by 2.6% to $374.1 million and diluted EPS increasing by 11.0% to $2.63. The company also increased its annual outlook for operating margin and EPS.

Revenue increased 2.6%, or $9.6 million, to $374.1 million.

ASV plus professional services was $1.52 billion, with an organic growth rate of 5.0%.

Operating margin increased to 32.5%, and adjusted operating margin improved to 35.5%.

Diluted earnings per share (EPS) increased 11.0% to $2.63.

Total Revenue
$374M
Previous year: $365M
+2.6%
EPS
$2.86
Previous year: $2.62
+9.2%
As Reported ASV
$1.52B
Organic ASV
$1.52B
Total Users
131.1K
Gross Profit
$203M
Previous year: $201M
+1.3%
Cash and Equivalents
$458M
Previous year: $324M
+41.3%
Free Cash Flow
$140M
Previous year: $148M
-5.7%
Total Assets
$1.95B
Previous year: $1.51B
+28.8%

FactSet

FactSet

FactSet Revenue by Geographic Location

Forward Guidance

FactSet updated its annual outlook for fiscal 2020. Given the risk factors, uncertainties, and assumptions discussed below, particularly the ongoing uncertainty surrounding the duration, magnitude, and impact of the novel coronavirus pandemic, FactSet’s actual future results may differ materially from these expectations.

Positive Outlook

  • Organic ASV plus professional services is now expected to increase in the range of $60 million and $75 million over fiscal 2019.
  • GAAP revenue is now expected to be in the range of $1,485 million and $1,490 million.
  • GAAP operating margin is now expected to be in the range of 30.0% and 30.5%.
  • Adjusted operating margin is now expected to be in the range of 33.0% and 33.5%.
  • Annual effective tax rate is now expected to be in the range of 15.5% and 16.5%.

Challenges Ahead

  • The change in the anticipated range reflects the current expected business impacts resulting from the coronavirus pandemic.
  • GAAP diluted EPS is now expected to be in the range of $9.60 and $9.80.
  • Adjusted diluted EPS is now expected to be in the range of $10.40 and $10.60.
  • Both GAAP operating margin and GAAP diluted EPS guidance do not include certain effects of any non-recurring benefits or charges that may arise in fiscal 2020.
  • FactSet’s actual future results may differ materially from these expectations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View FactSet