The timing of FactSet’s (FDS) earnings guidance revision is surprising given the company typically revisits its forecast in its fiscal second quarter, RBC Capital Markets said in a note emailed Wednesday.
FactSet on Tuesday lowered its fiscal 2024 adjusted earnings guidance to between $15.60 and $16 per diluted share from $15.65 to $16.15 per share anticipated previously.
It also lowered its revenue guidance to a range of $2.20 billion to $2.21 billion from $2.21 billion to $2.23 billion previously.
Given the limited visibility, the guidance is likely not fully de-risked, RBC Capital noted.
While FactSet still views its fiscal second half pipeline favorably, it does face a number of headwinds in the form of pricing pressure and delayed decision-making by clients due to budget constraints, the firm said.
RBC Capital maintained its Sector Perform rating on the stock with a price target of $464.