NYSE$FDS

Factset Research Systems Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported a revenue increase driven by the acquisition of CUSIP Global Services (CGS) and higher sales of research and advisory and analytics solutions, with organic ASV growth demonstrating the value of the company's offerings.

FactSet reported GAAP revenues of $488.8 million, a 22.3% increase from Q3 2021. Organic ASV plus professional services reached $1.8 billion, up 10.1% year over year. The company reaffirmed its fiscal 2022 guidance, expecting growth at the upper end and the effective tax rate at the lower end of previously communicated ranges.

  • GAAP revenues increased 22.3% to $488.8 million compared to the same period in fiscal 2021.
  • Organic revenue grew 10.5% to $441.7 million during the third quarter of fiscal 2022.
  • Organic ASV plus professional services was $1.8 billion at May 31, 2022, up 10.1% from the prior year.
  • Adjusted diluted EPS increased 38.2% to $3.76 compared with the prior year period.

Headline financials

Total Revenue

$489M

Previous: $400M+22.3%
EPS (adj)

$3.76

Previous: $2.72+38.2%
Reported ASV

$1.9B

Previous: $1.62B+17.5%
Organic ASV

$1.8B

Previous: $1.61B+11.7%
Total users

173.7K

Previous: 155.0K+12.1%
Capital Expenditures

-$15.4M

Previous: -$18.7M+17.4%
Free Cash Flow

$59.5M

Previous: $82M-27.5%
Net Income

$74.9M

Previous: $101M-25.6%
Operating Income

$97.3M

Previous: $118M-17.4%
Gross Profit

$266M

Previous: $194M+37.0%
Cash & Equivalents

$527M

Previous: $658M-20.0%
Total Assets

$4.07B

Previous: $2.22B+83.4%
Stock-Based Comp

$14.7M

Previous: $11M+33.0%

Revenue & EPS history

FactSet · Revenue · Quarterly

$489M

Q3 2022+22.3%vs Q3 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

FactSet reaffirms its annual outlook for fiscal 2022, anticipating operating results to trend towards the upper end of previously announced ranges, except for the effective tax rate, which is expected to be at the lower end of the range.

Tailwinds

  • Organic ASV plus professional services is expected to increase in the range of $130 million to $150 million over fiscal 2021.
  • Revenues are expected to be in the range of $1,800 million to $1,830 million.
  • Operating margin is expected to be in the range of 25.5% to 26.5%.
  • Adjusted operating margin is expected to be in the range of 33% to 34%.
  • FactSet's annual effective tax rate is expected to be in the range of 12.5% to 13.5%.

Headwinds

  • Diluted EPS is expected to be in the range of $9.75 to $10.15.
  • Adjusted diluted EPS is expected to be in the range of $12.75 to $13.15.
  • Operating margin guidance does not include certain effects of any non-recurring benefits or charges that may arise in fiscal 2022.
  • Diluted EPS guidance does not include certain effects of any non-recurring benefits or charges that may arise in fiscal 2022.
  • The forward-looking statements reflect FactSet's expectations as of today's date and actual results may differ materially.

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 2022

Historical avgQ3 2022

-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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