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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.
FactSet
FactSet
FactSet Revenue by Geographic Location
Revenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com 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