FactSet's 2Q Profits Rise 18%, Narrowly Trailing Forecasts

By Matt Egan Technology FOXBusiness

A trader looks at his screen on the floor of the New York Stock Exchange June 29, 2010. Investors fled the U.S. stock market on Tuesday and the S&P 500 tumbled to its lowest level in eight months in a sell-off triggered by a wave of increasing alarm ... over the global economic outlook. REUTERS/Brendan McDermid (UNITED STATES - Tags: BUSINESS) (Reuters)

FactSet Research (FDS) logged an 18% jump in fiscal second-quarter profits on Tuesday thanks to solid client growth, but the financial data and software company failed to meet Wall Street’s expectations.

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Shares of FactSet retreated about 2% on the weaker-than-expected results even as the company’s outlook matched forecasts.

FactSet said it earned $52.4 million, or $1.22 a share, last quarter, compared with a profit of $44.5 million, or $1.00 a share, a year earlier.

Excluding one-time items, it logged earnings of $1.11 a share, compared with the Street’s view of $1.12.

Revenue rose 6.5% to $226.9 million, essentially matching consensus calls from analysts for $226.4 million.

FactSet said its net client growth during the fiscal second quarter was the highest since 2006 and its buy-side users grew at the fastest pace since 2004. Users of the FactSet workstation jumped by 849 over the past three months to 51,863.

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“This is validation that our sizable reinvestment in our products and services is being recognized by the market,” FactSet CEO Philip Hadley said in a statement.

Looking ahead, FactSet projected third-quarter EPS of $1.24 to $1.26 on revenue of $229 million to $233 million. Analysts had been modeling for EPS of $1.26 on revenue of $228.7 million.

Shares of Norwalk, Conn.-based FactSet fell 1.90% to $102.55 ahead of the opening bell. The slide puts them on track to extend a 2014 slide of almost 4%.

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