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FactSet beats profit estimates on strong demand for its analytical tools
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FactSet beats profit estimates on strong demand for its analytical tools
Sep 25, 2024 9:27 PM

Sept 19 (Reuters) - FactSet Research Systems ( FDS )

reported a higher-than-expected fourth-quarter profit on

Thursday, as more traders signed up for its financial data and

analytics in anticipation of the U.S. Federal Reserve kicking

off interest rate cuts.

Shares rose around 3.2% to $461.01 before the bell. The

stock has lost nearly 6.34% so far this year, compared with a

17.79% gain for the benchmark S&P 500 index.

A highly anticipated interest rate cut, which the Federal

Reserve delivered on Wednesday, kept investors confident in the

health of the economy, fueling demand for market-related

analytical tools.

Excluding one-time costs, the Norwalk, Connecticut-based

company earned $3.74 per share in the three months ended August

31, beating LSEG estimates of $3.62.

Organic annual subscription value (ASV) plus professional

services rose 4.8% to $2.27 billion during the quarter. ASV is a

forward-looking indicator for sales for the next 12 months from

the current subscription services.

The company expects adjusted earnings per share of $16.80 to

$17.40 for the fiscal year 2025, compared with analysts'

expectations of $17.36.

It forecast annual revenue between $2.29 billion and $2.31

billion versus the estimate of $2.3 billion.

FactSet's revenue rose 4.9% to $562.2 million for the

quarter.

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