FactSet Research Systems Likely to Report Roughly ‘In-Line’ Fiscal Q3 Results, RBC Says

FactSet Research Systems (FDS) is expected to report roughly “in-line” fiscal Q3 results but the focus is on fiscal Q4 annual subscription value, RBC Capital Markets said in a note.

RBC, said in a Tuesday note, it expects FactSet to report fiscal Q3 adjusted earnings of $3.90 per diluted share and revenue of $552.7 million.

The brokerage said the key focus areas for fiscal Q3 are the impact of the UBS Group (UBS) and Credit Suisse merger, and the risk of a lower fiscal 2024 annual subscription value outlook.

For fiscal 2024, RBC anticipates the annual subscription value at $2.27 billion, representing a $98 million year-over-year growth which is below the company’s guidance of $110 million to 150 million due to an extended sales cycle and soft hiring trends.

The brokerage said they expect FactSet Research to reaffirm its fiscal 2024 annual subscription value outlook due to a strong sales pipeline.

The company anticipates global price increases in fiscal Q3 to be in line with a year earlier, according to the note.

RBC expects “cautious” spending from consumers and lower price realization that will continue to pressure pricing actions.

“We expect price increases to contribute $12-$13m in 3Q24,” the brokerage said.

RBC maintained a sector perform rating on FactSet’s stock with a price target of $464.

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