FactSet Research Systems Inc. (NYSE:FDS) Q3 2024 Earnings Conference Call June 21, 2024 11:00 AM ET Company Participants Ali van Nes – Head of Investor Relations Philip Snow – Chief Executive Officer Linda Huber – Chief Financial Officer Helen Shan – Chief Revenue Officer Conference Call Participants Toni Kaplan – Morgan Stanley Alex Kramm – UBS Kelsey Zhu – Autonomous Manav Patnaik – Barclays Faiza Alwy – Deutsche Bank Surinder Thind – Jefferies Ashish Sabadra – RBC George Tong – Goldman Sachs Andrew Nicholas – William Blair Shlomo Rosenbaum – Stifel Craig Huber – Huber Research Partners Russell Quelch – Redburn Heather Balsky – Bank of America Scott Wurtzel – Wolfe Research Operator Good day and thank you for standing by. Welcome to the Third Quarter FactSet Earnings Call. At this time all participants are in listen-only mode. After the speaker’s presentation there will be a question-and-answer session. [Operator Instructions] […]

Fiscal 2024 Expectations (with reference to most recent previous guidance): Organic ASV plus professional services is expected to grow in the range of $85 million to $120 million during fiscal 2024 (reduced from $110 million to $150 million). This represents ASV growth of 4.8% at the midpoint. GAAP revenues are expected to be in the range of $2,180 million to $2,190 million (down from $2,200 million to $2,210 million). GAAP operating margin is expected to be in the range of 33.7% to 34.0% (up from 32.5% to 33.0%). Adjusted operating margin is expected to be in the range of 37.0% to 37.5% (up from 36.3% to 36.7%). FactSet’s annual effective tax rate is expected to be in the range of 16.5% to 17.5% (unchanged). GAAP diluted EPS is expected to be in the range of $14.55 to $14.95 (up from $13.95 to $14.35). Adjusted diluted EPS is expected to be

We lower our 12-month target price by $15 to $520, 29.2x our FY 25 (Aug.) EPS estimate, higher than the company’s 10-year historical average of 26.8x, given strong growth prospects. We increase our FY 24 adjusted EPS by $0.28 to $16.59 and raise FY 25’s by $0.08 to $17.79. FDS reported May-Q adjusted EPS of $4.37 vs. $3.79 a year ago, $0.47 above consensus on revenue that came in at consensus. Revenue growth (+4% vs. 6% in prior quarter) continued to decelerate as results were once again impacted by consolidation cancellations following UBS’s acquisition of Credit Suisse. Still, despite revenue growth disappointing in recent quarters, we have been encouraged by FDS’s willingness to adapt quickly. FDS has responded with a 10% Y/Y reduction in employee costs and a 14% reduction in real estate. As a result, FDS’s adjusted operating margin expanded a hefty 340 bps to 39.4%. Additionally, encouraging signs

FactSet Research Systems (FDS) reported fiscal Q3 adjusted earnings Friday of $4.37 per diluted share, up from $3.79 a year earlier. Analysts polled by FactSet expected $3.91. Revenue for the quarter ended May 31 was $552.7 million, compared with $529.8 million a year earlier. Analysts surveyed by FactSet expected $552.7 million. The company raised its fiscal-year 2024 adjusted earnings guidance to $16.00 to $16.40 per diluted share, from $15.60 to $16.00. Analysts polled by FactSet expect $16.00. The company reduced its revenue outlook for the year to $2.18 billion to $2.19 billion, from $2.20 billion to $2.21 billion. Analysts surveyed by FactSet expect $2.20 billion.