FactSet Research Systems 1Q Profit Gains on New Subscriptions

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.

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.