NYSE$FDS

Factset Research Systems Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported solid results driven by operational discipline and execution in a volatile market.

FactSet reported a strong third quarter with revenue increasing by 2.6% to $374.1 million and diluted EPS increasing by 11.0% to $2.63. The company also increased its annual outlook for operating margin and EPS.

  • Revenue increased 2.6%, or $9.6 million, to $374.1 million.
  • ASV plus professional services was $1.52 billion, with an organic growth rate of 5.0%.
  • Operating margin increased to 32.5%, and adjusted operating margin improved to 35.5%.
  • Diluted earnings per share (EPS) increased 11.0% to $2.63.

Headline financials

Total Revenue

$374M

Previous: $365M+2.6%
EPS (adj)

$2.86

Previous: $2.62+9.2%
Reported ASV

$1.52B

No prior period
Organic ASV

$1.52B

No prior period
Total users

131.1K

No prior period
Capital Expenditures

-$11M

Previous: -$11.4M+3.6%
Free Cash Flow

$90.2M

Previous: $80.8M+11.6%
Net Income

$101M

Previous: $92.3M+9.7%
Operating Income

$122M

Previous: $117M+3.8%
Gross Profit

$203M

Previous: $201M+1.3%
Cash & Equivalents

$458M

Previous: $324M+41.3%
Total Assets

$1.95B

Previous: $1.51B+28.8%
Stock-Based Comp

$10.3M

Previous: $8M+29.4%

Revenue & EPS history

FactSet · Revenue · Quarterly

$374M

Q3 2020+2.6%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

FactSet updated its annual outlook for fiscal 2020. Given the risk factors, uncertainties, and assumptions discussed below, particularly the ongoing uncertainty surrounding the duration, magnitude, and impact of the novel coronavirus pandemic, FactSet’s actual future results may differ materially from these expectations.

Tailwinds

  • Organic ASV plus professional services is now expected to increase in the range of $60 million and $75 million over fiscal 2019.
  • GAAP revenue is now expected to be in the range of $1,485 million and $1,490 million.
  • GAAP operating margin is now expected to be in the range of 30.0% and 30.5%.
  • Adjusted operating margin is now expected to be in the range of 33.0% and 33.5%.
  • Annual effective tax rate is now expected to be in the range of 15.5% and 16.5%.

Headwinds

  • The change in the anticipated range reflects the current expected business impacts resulting from the coronavirus pandemic.
  • GAAP diluted EPS is now expected to be in the range of $9.60 and $9.80.
  • Adjusted diluted EPS is now expected to be in the range of $10.40 and $10.60.
  • Both GAAP operating margin and GAAP diluted EPS guidance do not include certain effects of any non-recurring benefits or charges that may arise in fiscal 2020.
  • FactSet’s actual future results may differ materially from these expectations.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-1.6%

Avg return

Earnings day

-1.1%

Avg return

5 days after

+0.4%

Avg return

30 days after

33%

22 / 67 earnings

Positive

+10.6%

Q3 2020

Best reaction

-11.5%

Q3 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026+3.3%+2.9%
Q1 2026-7.8%-1.8%-2.5%
Q4 2025-10.3%-14.2%-14.7%
Q3 2025-1.3%-1.7%-14.8%
Q2 2025-1.7%+0.2%-2.6%
Q1 2025+2.2%+3.9%-2.1%
Q4 2024+4.3%+3.8%+5.5%
Q3 2024+4.1%+1.8%+3.9%
Q2 2024-8.3%-9.0%-11.0%
Q1 2024-1.3%+2.3%+0.6%
Q4 2023+2.8%+2.0%+1.5%
Q3 2023-6.9%-5.4%+2.0%
Q2 2023-4.0%-3.4%+1.4%
Q1 2023-3.7%-5.2%+0.4%
Q4 2022-8.8%-9.1%-5.4%
Q3 2022+9.1%+4.5%+13.4%
Q2 2022-3.0%+2.5%+0.1%
Q1 2022+1.4%+1.8%-9.6%
Q4 2021+6.9%+6.8%+18.9%
Q3 2021-0.4%+0.4%+3.6%
Q2 2021-4.7%-2.1%+5.3%
Q1 2021-4.6%-5.6%-5.6%
Q4 2020-0.7%+1.0%-0.7%
Q3 2020+10.6%+10.5%+17.1%
Q2 2020+9.4%+12.0%+17.9%
Q1 2020-1.5%-0.8%+2.5%
Q4 2019-10.7%-11.4%-6.2%
Q3 2019-1.4%-2.3%-5.3%
Q2 2019+4.1%+6.3%+14.4%
Q1 2019-7.6%-10.6%-3.0%
Q4 2018-2.6%-3.4%-6.9%
Q3 2018-3.7%-4.7%-1.4%
Q2 2018-5.5%-5.0%-7.6%
Q1 2018-4.8%-6.2%-2.7%
Q4 2017+4.8%+5.4%+10.9%
Q3 2017+2.2%+0.1%-0.8%
Q2 2017-5.8%-5.5%-6.1%
Q1 2017-0.1%-1.3%+2.3%
Q4 2016-7.8%-8.0%-12.5%
Q3 2016+4.0%+6.6%+14.5%
Q2 2016-3.1%
Q1 2016-4.4%
Q4 2015-1.7%
Q3 2015-0.8%
Q2 2015+2.2%
Q1 2015+3.6%
Q4 2014-2.6%
Q3 2014+1.2%
Q2 2014+5.0%
Q1 2014-6.1%
Q4 2013-1.1%
Q3 2013-4.1%
Q2 2013-5.6%
Q1 2013-6.0%
Q3 2010-0.3%
Q4 2012-5.3%
Q3 2012-11.5%
Q2 2012+7.7%
Q1 2012-7.3%
Q4 2009-5.8%
Q4 2011-5.8%
Q3 2011-2.9%
Q2 2010-0.7%
Q2 2011-0.7%
Q1 2011+0.5%
Q4 2010+0.5%
Q1 2010+0.5%

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