UPDATE: FactSet Research Q2 Profit Misses Estimates, CEO To Step Down

FactSet Research Systems Inc. FDS reported weaker-than-expected earnings for the fiscal second quarter and reported that its CEO Philip Hadley is stepping down. Philip Snow will become the company's CEO on July 1. However, Mr. Hadley will remain Chairman of the board. The Norwalk, Connecticut-based company posted a quarterly profit of $61.6 million, or $1.46 per share, versus a year-ago profit of $52.4 million, or $1.22 per share. Excluding special items, the company's earnings surged to $1.39 per share from $1.22 per share. Its revenue rose 9.2% to $247.8 million. However, analysts were expecting earnings of $1.40 per share on revenue of $247.8 million. The company had expected earnings of $1.35 to $1.37 per share on revenue of $244 million to $248 million. U.S. revenue climbed 8% to $166.5 million, while international revenue jumped to $81.3 million. Operating income climbed to $80.6 million from $75.1 million, while adjusted operating margin widened to 33.8% from 33.1%. As of February 28, 2015, the company's client count increased by 106 to 2,868. Annual Subscription Value rose 8.5% organically from the previous year to $1.005 billion. "FactSet performed very well during the just completed quarter as ASV, revenue, client and user count, and EPS all grew to record highs," said Philip Hadley, Chairman and CEO. "The first half of fiscal 2015 was our strongest first half in ASV growth since 2011 and our 14% EPS increase represented our 19th consecutive quarter of double-digit EPS growth." For the current quarter, the company expects earnings of $1.40 to $1.42 per share on revenue of $251 million to $256 million. Analysts had expected earnings of $1.40 per share on revenue of $246.7 million. FactSet Research shares rose 1.59% to close at $154.19 yesterday.