Factset Research Systems Inc (NYSE: FDS) stock fell 2.01% (As on March 24, 11:14:17 AM UTC-4, Source: Google Finance) after the company posted mixed results for the second quarter of FY 23. Adjusted operating margin improved to 37.0% compared with 33.7% in the prior year period, driven by higher revenue, lower personnel cost as a percentage of revenue, lower third-party content costs, the lapping of the previous year’s impairment charge of $10.3 million, and reduced facilities expenses, partially offset by higher technology expense and operating costs related to CGS. Adjusted EBITDA increased to $199.7 million, up 35.8%, for the second quarter of fiscal 2023, compared with $147.0 million for the same period in fiscal 2022, driven by higher operating income. In connection with the acquisition of CGS, FactSet entered into a new credit agreement providing for a $1 billion term loan and revolving credit facilities. In the second quarter of fiscal 2023, FactSet made a $125 million prepayment of the principal amount of the term loan. As of February 28, 2023, a total of $500 million in term loan principal prepayments have been made.

FDS in the second quarter of FY 23 has reported the adjusted earnings per share of $3.80, beating the analysts’ estimates for the adjusted earnings per share of $3.65, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 19.5 percent to $515.1 million in the second quarter of FY 23, missing the analysts’ estimates for revenue of $515.7 million. The increase was primarily due to the addition of CUSIP Global Services (CGS) and higher sales of Content & Technology and Analytics & Trading solutions. Organic revenue, which excludes the effects of acquisitions and dispositions completed within the last 12 months and foreign currency movements, grew 8.9% to $469.5 million during the second quarter of fiscal 2023 from the prior year period. Annual Subscription Value (ASV) plus professional services was $2.1 billion at February 28, 2023, compared with $1.8 billion at February 28, 2022. Organic ASV plus professional services, which excludes the effects of acquisitions and dispositions completed within the last 12 months and foreign currency movements, was $1.9 billion at February 28, 2023, up $158.7 million from the prior year at a growth rate of 9.1%.

FactSet expects full-year earnings to be in the range of $14.50 to $14.90 per share, with revenue in the range of $2.08 billion to $2.1 billion.