LONDON, UK / ACCESSWIRE / July 7, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on FactSet Research Systems Inc. (NYSE: FDS), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=FDS, following the Company's posting of its third quarter 2017 financial results on June 27, 2017. The financial services provider surpassed earnings expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

http://protraderdaily.com/register/

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on FDS. With the links below you can directly download the report of your stock of interest-free of charge at:

http://protraderdaily.com/optin/?symbol=FDS

Earnings Reviewed

For the third quarter ended May 31, 2017, FactSet's revenues increased 8.6% to $312.1 million compared with $287.5 million for Q3 FY16. The Company's revenues in the reported quarter were reduced by a $2.5 million deferred revenue fair value adjustment related to the Company's recent acquisitions. FactSet's organic revenues grew 5.9% on a y-o-y basis to $293.9 million during Q3 FY17.

FactSet's operating margin decreased to 28.1% in Q3 FY17 compared to 31.1% in Q3 FY16. The decline was attributable to acquisition-related costs of $4.4 million and the aforementioned deferred revenue adjustment of $2.5 million. The Company's adjusted operating margin fell to 31.9% compared with 33.0% in the year-ago same period.

For Q3 FY17, FactSet's diluted earnings per share ("EPS") increased 2.5% to $1.66 compared with $1.62 for Q3 FY16. The Company's adjusted diluted EPS for the reported quarter rose 12.8% to $1.85 and ahead of Wall Street's expectations of $1.84 per share.

ASV and Segment Revenue

FactSet's Annual Subscription Value (ASV) increased to $1.28 billion at May 31, 2017 compared with prior year's ASV of $1.16 billion. Organic ASV, which excluded the effects of acquisitions, dispositions, and foreign currency, increased 5.7%.

Buy-side and sell-side ASV growth rates for Q3 FY17 were 5.7% and 5.8%, respectively. The Company stated that buy-side clients accounted for 84% of ASV while the remainder was derived from sell-side firms that perform mergers and acquisitions advisory work, capital markets services, and equity research.

In Q3 FY17, FactSet's ASV from US operations was $807.8 million, increasing 4.2% on a y-o-y basis from $775.6 million and 4.5% organically. US revenues were $197.8 million compared with $189.2 million. Excluding the effects of acquisitions and dispositions completed in the last 12 months, US revenue growth rate was 4.6%.

FactSet's ASV from international operations was $474.3 million in the reported quarter, increasing 24.6% over the prior year of $380.7 million and 7.8% organically. International ASV represented 37.0% of FactSet's total ASV, up from 32.9% a year ago. International revenues rose to $114.3 million compared with $98.3 million from Q3 2016. Excluding the effects of acquisitions and dispositions completed in the last 12 months and foreign currency, FactSet's International revenue growth rate was 8.2%.

Operational Highlights

FactSet's Client count as of May 31, 2017 was 4,629, a net increase of 225 clients in the past three months. This increase included 117 net new clients from the acquisitions of BISAM and FDSG. The Company's user count grew by 237 to 86,025 in the past three months.

Annual client retention was greater than 95% of ASV. As a percentage of clients, annual retention was 92%.

Employee count was 8,885 at May 31, 2017, up 785 people in the past 12 months. Excluding workforces acquired in fiscal 2017 and employees of the sold Market Metrics business, headcount increased 5.2% from a year ago.

Cash Matters

For Q3 FY17, FactSet's free cash flow was $84.3 million compared with $88.6 million for Q3 FY16. The Company's operating cash flow for the reported quarter was $92.3 million compared with $96.9 million for the prior year's same quarter.

FactSet's capital expenditures increased to $7.9 million compared with $8.2 million a year ago primarily due to the build-out of office space.

During Q3 FY17, FactSet paid $205.2 million and $20.0 million in cash, respectively, for BISAM Technologies S.A. and the Interactive Data Managed Solutions (IDMS) business, renamed FactSet Digital Solutions (FDSG).

Share Repurchase Program

FactSet repurchased 300,000 shares for $48.3 million during Q3 FY17 under the Company's existing share repurchase program. Over the last 12 months, FactSet has returned $458 million to stockholders in the form of share repurchases and dividends, funded by cash generated from operations and proceeds from the sale of the Market Metrics business. As of May 31, 2017, $288.2 million was available for future share repurchases.

Business Outlook

For Q4 FY17, FactSet is forecasting GAAP revenues in the range of $321 million and $328 million. The Company is expecting GAAP operating margin to be in the band of 28% and 29%. Adjusted operating margin is expected to be in the range of 31% and 32%.

FactSet is projecting GAAP diluted EPS to be in the range of $1.67 and $1.73. The Company's adjusted diluted EPS is expected to be in the range of $1.86 and $1.92. The midpoint of the adjusted EPS range represents 12% growth on a y-o-y basis.

Stock Performance

At the closing bell, on Thursday, July 06, 2017, FactSet's stock dropped 2.85%, ending the trading session at $160.58. A total volume of 293.74 thousand shares has exchanged hands. The Company's stock price advanced 0.40% in the previous twelve months. The stock is trading at a PE ratio of 18.79 and has a dividend yield of 1.39%. The stock currently has a market cap of $6.46 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily