Assisted by higher subscriptions, FactSet Research Systems (NYSE:FDS) reported Tuesday a 15.2% gain in first-quarter profit, however traders far from cheered its tepid earnings forecast, sending the information provider's shares lower.
The Norwalk, Conn-based company posted net income of $41.6 million, or 88 cents a share, compared with $36.1 million, or 74 cents a share, in the same quarter last year, ahead of average analyst estimates polled by Thomson Reuters of 84 cents.
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Revenue for the provider of financial and analytical information to the global investment community was $173.3 million, up 12% from $155.2 million a year ago, virtually matching the Street’s view of $173.03 million.
“Our first quarter results illustrate the strength of FactSet's business model,” the company’s chief executive, Philip A. Hadley, said in a statement. “We continue to be able to provide superior workflow solutions to our clients and grow both our ASV and EPS.”
FactSet’s ASV, or annual subscription value, soared to $695 million for the period ended Nov. 30, up 10% from the year-earlier period.
The company sees second-quarter earnings in the range of 85 cents and 87 cents a share, weaker than the prior period, on revenue of $174 million to $179 million.