FactSet Research Systems Inc. (NYSE: FDS) posted mixed results for the first quarter of FY 20. Client count had increased by 27 as of November 30, 2019 to 5,601, in the past three months, mainly due to an increase in corporate clients and wealth management. The count includes clients with ASV of $10,000 and above. User count fell by 37 to 126,785 in the past three months mainly due to a decrease in sell side users. Annual ASV retention was greater than 95% and as a percentage of clients, the annual retention was 89%. The company’s Quarterly free cash flow increased to $69 million compared to $36.8 million a year ago, an increase of 87.6% mainly due to higher net income, improved cash collections and timing of payables partially offset by higher capital expenditures.
FDS in the first quarter of FY 20 has reported the adjusted earnings per share of $2.58, beating the analysts’ estimates for the adjusted earnings per share of $2.42. The company had reported the adjusted revenue growth of 4.3 percent to $366.66 million in the first quarter of FY 20, missing the analysts’ estimates for revenue by 0.21%.
Additionally, FDS had repurchased 343,000 shares for $84.4 million at an average price of $246.13 during the first quarter under the Company’s existing share repurchase program. As of November 30, 2019, $154.2 million was available for share repurchases. Further, the company has paid a regular quarterly dividend of $27.3 million, or $0.72 per share, on December 19, 2019, to holders of record of FDS’ common stock at the close of business on November 29, 2019.
For fiscal 2020, the company project earnings to be in a range of $8.70 to $9.00 per share and adjusted earnings to be in a range of $9.85 to $10.15 per share on revenue expected to be between $1.49 billion and $1.50 billion. The analysts polled by Thomson Reuters expect the company to report earnings of $10.02 per share on revenues of $1.50 billion for the year.
For fiscal 2020, the company expects Organic ASV plus professional services to increase in the range of $65 million and $85 million over fiscal 2019. Adjusted operating margin is anticipated to be in the range of 31.5% and 32.5% and FactSet’s annual effective tax rate is anticipated to be in the range of 17.0% and 17.5%.