FactSet Shares Fall on Bleak 4Q Forecast

By Features FOXBusiness

Shares of FactSet (FDS) tumbled more than 9% Tuesday after the financial information provider forecast weaker-than-expected fourth-quarter revenue.

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The Norwalk, Ct.-based company forecasts adjusted earnings for the current period of $1.15 to $1.17 a share ($1.06 to $1.08 unadjusted) on revenue of $204 million to $208 million.

Analysts in a Thomson Reuters poll are looking for earnings of $1.08 a share on sales of $210.2 million.

For the third quarter, FactSet revealed a better-than-expected profit of $48 million, or $1.05, compared with $43.3 million, or 92 cents, a year ago.

Excluding one-time items, the company earned $1.15 a share, far ahead of the Street’s view of $1.04.

Revenues for the three months ended May 31 climbed 10% to $202 million, just below average analyst estimates of $203 million. Sales were higher both domestically and in FactSet’s international markets.

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"While the economy remains volatile, results indicate our philosophy of consistently investing for the future is paying off,” FactSet CEO Philip Hadley said in a statement.

Annual subscription value was up 9% to $811 million, while users climbed by 1,100 to 48,400.