Sept 19 (Askume) – FactSet Research Systems (FDS.N) reported better-than-expected fourth-quarter profit on Thursday, with more traders subscribing to its financial data and analysis cuts in anticipation of the Federal Reserve starting to raise interest rates.
Shares rose about 3.2% to $461.01 in pre-market trading. The stock has fallen about 6.34% so far this year, while the benchmark S&P 500 index (.SPX) has gained 17.79%.
The Federal Reserve’s much-anticipated interest rate cut announced on Wednesday gave investors confidence in the health of the economy, boosting 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 Aug. 31, above LSEG’s forecast of $3.62.
Organic annual subscription value (ASV) plus professional services grew 4.8% in the quarter to $2.27 billion. ASV is a forward-looking indicator of current subscription service sales over the next 12 months.
The company expects adjusted earnings per share of $16.80 to $17.40 in fiscal 2025, while analysts are expecting $17.36.
Annual revenue is expected to be $2.29 billion to $2.31 billion, while estimates are for $2.3 billion.
FactSet’s revenue for the quarter grew 4.9% to $562.2 million.
