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Market Overview

Earnings Preview: FactSet Research Systems

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On Tuesday, March 30, FactSet Research Systems (NYSE:FDS) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on management's projections, FactSet Research Systems analysts model for earnings of $2.74 per share on sales of $391.46 million. In the same quarter last year, FactSet Research Systems reported earnings per share of $2.55 on revenue of $369.78 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 7.45% increase in the company's EPS figure. Sales would be up 5.86% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2020
EPS Estimate 2.75 2.54 2.43 2.49
EPS Actual 2.88 2.88 2.86 2.55
Revenue Estimate 387.36 M 378.38 M 376.03 M 370.08 M
Revenue Actual 388.21 M 383.59 M 374.08 M 369.78 M

eps graph

Stock Performance

Over the last 52-week period, shares are up 25.56%. Given that these returns are generally positive, long-term shareholders can be content 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