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Earnings Preview: FactSet Research Systems

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FactSet Research Systems (NYSE:FDS) will be releasing its next round of earnings this Monday, December 21. For all of the relevant information, here is your guide for Monday's Q1 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

FactSet Research Systems EPS will likely be near $2.75 while revenue will be around $387.36 million, according to analysts. In the same quarter last year, FactSet Research Systems reported earnings per share of $2.58 on sales of $366.66 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Monday, quarterly profit would be up 6.59%. Sales would be up 5.65% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2019
EPS Estimate 2.54 2.43 2.49 2.42
EPS Actual 2.88 2.86 2.55 2.58
Revenue Estimate 378.38 M 376.03 M 370.08 M 367.26 M
Revenue Actual 383.59 M 374.08 M 369.78 M 366.66 M

Stock Performance

Shares of FactSet Research Systems were trading at $345.52 as of December 17. Over the last 52-week period, shares are up 29.07%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. FactSet Research Systems is scheduled to hold the call at 11:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings