Financial data provider FactSet (NYSE: FDS) will be reporting earnings this Thursday morning. Here’s what to expect.
FactSet beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $596.9 million, up 6.2% year on year. It was a slower quarter for the company, with full-year EPS guidance slightly missing analysts’ expectations and a significant miss of analysts’ EPS estimates.
Is FactSet a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting FactSet’s revenue to grow 5.5% year on year to $600 million, in line with the 4.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.36 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. FactSet has missed Wall Street’s revenue estimates twice over the last two years.
With FactSet being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for capital markets stocks. However, there has been positive investor sentiment in the segment, with share prices up 8.6% on average over the last month. FactSet is up 7.1% during the same time and is heading into earnings with an average analyst price target of $333.19 (compared to the current share price of $292.86).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
