11:56 AM EDT, 05/29/2024 (MT Newswires) -- FactSet Research Systems ( FDS ) is expected to report roughly "in-line" fiscal Q3 results but the focus is on fiscal Q4 annual subscription value, RBC Capital Markets said in a note.

RBC, said in a Tuesday note, it expects FactSet to report fiscal Q3 adjusted earnings of $3.90 per diluted share and revenue of $552.7 million.

The brokerage said the key focus areas for fiscal Q3 are the impact of the UBS Group ( UBS ) and Credit Suisse merger, and the risk of a lower fiscal 2024 annual subscription value outlook.

For fiscal 2024, RBC anticipates the annual subscription value at $2.27 billion, representing a $98 million year-over-year growth which is below the company's guidance of $110 million to 150 million due to an extended sales cycle and soft hiring trends.

The brokerage said they expect FactSet Research ( FDS ) to reaffirm its fiscal 2024 annual subscription value outlook due to a strong sales pipeline.

The company anticipates global price increases in fiscal Q3 to be in line with a year earlier, according to the note.

RBC expects "cautious" spending from consumers and lower price realization that will continue to pressure pricing actions.

"We expect price increases to contribute $12-$13m in 3Q24," the brokerage said.

RBC maintained a sector perform rating on FactSet's stock with a price target of $464.

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