Earnings stock to watch: FactSet Research Systems Inc. (NYSE: FDS)

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FactSet Research Systems Inc. (NYSE: FDS) stock rose 10.67% on March 26th, 2020 and continued its bullish momentum on March 27th, 2020 rising 0.9% (as of 11:16 am GMT-4; Source: Google finance). For the second quarter of FY 20, the company grew in the Q2 due to strong performance from analytics. This strength was reflected across multiple aspects of the business, including performance and reporting, trading solutions, and risk management, where the company is seeing demand for the multi-asset class offering. The analytics pipeline is strong with strong demand in performance, reporting and fixed income. The company’s research had a strong quarter compared to the first quarter, due to stronger client retention and cross-selling to existing clients. The Research segment also benefited from the annual price increase. Within content and technology solutions, the company has a solid pipeline as FDS head into the second half of the year, due to strength in the core and premium data feeds offering.

Further, the company is investing from a position of strength to meet universal client demand for increased efficiency and cost savings, mainly through the investments in content and technology. This investment is more important today than ever with clients stressing the need for flexible access to critical data in the current environment.

FDS in the second quarter of FY 20 has reported the adjusted earnings per share of $2.55, beating the analysts’ estimates for the adjusted earnings per share of $2.47, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 4 percent to $369.8 million in the second quarter of FY 20.

The revenue growth also got the supported by the January 1 annual Americas price increase, which totaled $12 million, $2 million increase over the prior year. For the geographic segments, over the last one year, Americas revenue and international revenue both grew 4% organically. Americas mainly got the benefit from rise in wealth and analytics. International revenue growth is driven by analytics and CTS.

Additionally, for the second quarter, the company bought back 268,000 shares for $74 million at the average share price of $277. The company has recently authorized an additional $220 million to the share repurchase program, bringing the total size back to $300 million

FactSet expects full-year 2020 earnings to be in the range of $9.85 to $10.15 per share, with revenue expected to be in the range of $1.49 billion to $1.5 billion.

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