On Friday, Shares of FactSet Research Systems Inc. (NYSE: FDS) gained 0.54% to $223.08. The stock opened its trade at $222.35 and after floating in a price range of $222.35 to $224.40; the stock grabbed the investor’s attention and traded 52,486 shares as compared to its average daily volume of 288.28K shares. The stock’s institutional ownership stands at 94.20%.
FactSet (FDS) recently declared its results for the fourth quarter ended August 31, 2018.
Fourth Quarter Fiscal 2018 Highlights:
- Revenues increased 5.9% or $19.20M to $345.90M contrast with $326.60M for the same period in fiscal 2017. Organic revenues grew 5.3% to $347.10M during the fourth quarter of 2018 from the prior year period. The increase is mainly because of higher sales of research and analytics products, content and technology solutions (CTS) and wealth management solutions.
- Annual Subscription Value (ASV) increased to $1.390B at August 31, 2018 contrast with prior year ASV of $1.320B. Fourth quarter organic ASV growth of $38.60M is the highest in the history of the Company. The organic ASV growth rate, which excludes the effects of acquisitions, dispositions, and foreign currency, was 5.7%. Operating margin increased to 25.5% contrast with 25.2% for the same period last year. Adjusted operating margin rose to 31.3% contrast with 31.2% in the prior year period. Diluted earnings per share (EPS) advanced to $1.77 contrast with $1.52 for the same period in fiscal 2017. Adjusted diluted EPS rose 15.8% to $2.20 contrast with $1.90 in the prior period boosted mainly by the U.S. Tax Cuts and Jobs Act (TCJA). The Company’s effective tax rate for the fourth quarter was 18.0% contrast with 25.3% a year ago, mainly because of the TCJA. FactSet celebrated 40 years as a company achieving 38 successive years of revenue growth and 22 years of successive adjusted diluted EPS growth.
Annual Subscription Value (ASV):
ASV was $1.390B at August 31, 2018, up $74.40M organically from the prior year. The organic ASV growth rate was 5.7%. Organic ASV, which excludes the effects of acquisitions, dispositions and foreign currency, increased $38.60M over the last three months. ASV at any given point in time represents the forward-looking revenues for the next twelve months from all subscription services presently supplied to clients and excludes professional services fees billed in the last 12 months, which are not subscription-based. Buy-side and sell-side ASV growth rates for the fourth quarter of fiscal 2018 were 5.4% and 7.3%, respectively. Buy-side clients accounted for 83.9% of organic ASV while the remainder is derived from sell-side firms that perform mergers and acquisitions advisory work, capital markets services and equity research. Supplementary tables covering organic buy-side and sell-side ASV growth rates may be found on the last page of this earnings release.
ASV from U.S. operations was $868.70M, increasing 5.3% over prior year of $825.10M and 5.3% organically. U.S. revenues for the quarter were $213.90M contrast with $204.10M in the fourth quarter last year. Excluding the effects of acquisitions and dispositions accomplished in the last 12 months, the U.S. revenue growth rate was 4.7%. ASV from international operations was $524.40M, increasing 6.7% over prior year of $491.50M and 6.3% organically. International ASV now represents 37.6% of total ASV, up from 37.3% a year ago. International revenues were $131.90M contrast with $122.60M from the fourth quarter of fiscal 2017. Excluding the effects of acquisitions and dispositions accomplished in the last 12 months and foreign currency, the international revenue growth rate was 6.3%.
Organic ASV from FactSet’s workflow solutions at August 31, 2018 was as follows:
- Research ASV was $637.20M and remained flat as compared to the same period a year ago.
- Analytics ASV was $475.00M and grew 9.8% year over year.
- Content and Technology Solutions ASV was $147.80M, increasing 18.6% year over year.
- Wealth ASV was $131.10M, increasing 10.0% from the prior year.
FDS has a market value of $8.60B while its EPS was booked as $7.43 in the last 12 months. The stock has 38.78M shares outstanding. In the profitability analysis, the company has gross profit margin of 51.20% while net profit margin was 18.40%. Beta value of the company was 0.96; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 3.20.