FactSet Tops Q3 Views

FactSet Research Systems Inc. FDS reported better-than-expected earnings for its fiscal third quarter on Tuesday. The Norwalk, Connecticut-based company posted quarterly earnings of $61.4 million, or $1.45 per share, compared to $51.5 million, or $1.21 per share, in the year-ago period. Excluding items, the company's adjusted earnings surged 13.6 percent to $1.42 per share. Its revenue climbed 9.8 percent year-over-year to $254.5 million from $231.8 million. However, analysts were expecting earnings of $1.41 per share on revenue of $253.56 million. The average estimate among 12 Estimize users was for earnings of $1.43 per share and revenue of $254.14 million. U.S. revenue came in at $172.1 million in the quarter, while non-U.S. revenue climbed to $82.4 million. Its operating income jumped to $85.4 million from $73.0 million. Free cash flow surged 7.8 percent to $98.5 million. At May 31, 2015, ASV climbed 8.9 percent organically versus the previous year to $1.021 billion. During the quarter, FactSet repurchased 440,100 shares for $70.2 million. "FactSet continued its strong performance during the third quarter as each key operating metric experienced healthy growth," said Philip Hadley, Chairman and CEO. "Our ASV growth rate accelerated to 9%, our highest rate of growth in three years while our 14% EPS increase represented our 20th consecutive quarter of double-digit adjusted EPS growth. I am also excited for Phil Snow to become our next CEO on July 1st. He and the veteran FactSet management team are well positioned to lead the Company into our next phase of growth." For the current quarter, FactSet projects earnings of $1.46 to $1.48 per share, on revenue of $259 million to $263 million. FactSet shares fell 0.19 percent to close at $165.42 yesterday.