Factset Research Systems Inc (NYSE:FDS) stock rose 1.87% (As on September 21, 11:36:13 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY 23. As of August 31, 2023, the client count was 7,921, a net increase of 151 clients in the past three months, primarily driven by the rise in corporate and wealth management clients and channel partners. Adjusted operating margin improved to 33.6% (+210 bps Y/Y), driven by a lower bonus accrual, partially offset by higher salary expenses. Adjusted EBITDA increased to $172.2 million, up 8.6% Y/Y, due to higher income tax add-backs and impairment charges. The company exited the quarter with $425.44 million in cash and equivalents.
FDS in the fourth quarter of FY 23 has reported the adjusted earnings per share of $2.93, missing the analysts’ estimates for the adjusted earnings per share of $3.94, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 7.3 percent to $535.8 million in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $534.9 million. The sales increase was primarily due to higher sales of Analytics & Trading and Content & Technology solutions. Annual Subscription Value (ASV) plus professional services was $2.2 billion at August 31, 2023, compared with $2.01 billion at August 31, 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 $2.2 billion at August 31, 2023, up $145.0 million from the prior year at a growth rate of 7.1%. Organic ASV plus professional services increased $54.9 million over the last three months. The primary contributors to this growth were higher sales of Analytics & Trading and Content & Technology solutions. Please see the “ASV + Professional Services” section of this press release for details.
Additionally, FactSet repurchased 264,400 shares of its common stock for $109.6 million at an average price of $414.63 during the fourth quarter. On June 20, 2023, the Board approved a new share repurchase authorization of up to $300 million, which became available on September 1, 2023.
FactSet expects full-year earnings in the range of $15.65 to $16.15 per share, while the Street view stands at $16.65 with revenue expected to be in the range of $2.21 billion to $2.23 billion. The Street View for revenue stands at $2.23 billion. Adjusted operating margin is expected to be in the range of 36.3%-36.7%.