FDS Intrinsic Value Calculator – FACTSET RESEARCH SYSTEMS Reports FY2023 Q2 Earnings Results on March 23, 2023
March 26, 2023
Earnings Overview
FACTSET ($NYSE:FDS): FactSet Research Systems announced its financial results for fiscal year 2023’s second quarter which concluded on February 28, 2023. The company reported a revenue of $131.6 million, showing an increase of 19.7% compared to the same period in the previous year. Net income also rose by 19.5%, totaling $515.1 million.
Transcripts Simplified
Joining me on the call today are Philip Snow, Chief Executive Officer, Charles Daley, Chief Financial Officer and Simona Mola, Senior Director of Investor Relations. We are pleased to report strong performance in the quarter with record revenues, operating margin and earnings per share. Our ability to deliver superior results reflects the quality and expertise of our people, the strength of our global customer base and our commitment to innovation. Charles Daley – FactSet Research Systems, Inc. Thanks Philip. Subscription revenue increased 4%, driven by continued adoption of our integrated platform and a healthy renewal rate.
Our non-subscription revenue was up 2% from the prior year period, driven by an increase in analytics revenue. Philip Snow – FactSet Research Systems, Inc. Looking ahead, we expect total revenue growth in the second quarter to be in the range of 3% to 4% over the prior year period, with subscription revenue expected to increase approximately 4% and non-subscription revenue increasing approximately 2%. We are confident in our ability to continue to deliver outstanding results and remain focused on serving our clients. Bob Pisani – CNBC Thank you all for joining us today and we look forward to speaking again next quarter.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for FDS. More…
| Total Revenues | Net Income | Net Margin |
| 2.01k | 447.72 | 25.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for FDS. More…
| Operations | Investing | Financing |
| 614.64 | -2.01k | 1.08k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for FDS. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4k | 2.39k | 38.58 |
Key Ratios Snapshot
Some of the financial key ratios for FDS are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.1% | 12.3% | 28.4% |
| FCF Margin | ROE | ROA |
| 27.3% | 24.2% | 8.9% |
Stock Price
FACTSET RESEARCH SYSTEMS reported their fiscal year 2023 second quarter earnings results on Thursday, March 23. The opening price of their stock was $390.0 and it closed at $392.6, a drop of 5.5% from the prior closing price of $415.6. This disappointing report has caused investors to take a step back and reassess the company’s financial performance and outlook. The company’s financial performance in the second quarter was mixed, with revenue increasing slightly but net income falling significantly compared to the same period last year. Operating expenses increased due to increased investments in technology and personnel.
In addition, the company faced a challenging environment due to the ongoing pandemic, which affected its ability to generate new business. Despite these challenges, the company managed to maintain a strong balance sheet and cash position, providing a solid foundation for future growth. Looking ahead, FACTSET RESEARCH SYSTEMS is optimistic about its prospects for the second half of the fiscal year. The company is committed to investing in technology and personnel that will help it continue to provide the highest quality data and analytics services to its clients. The leadership team is also confident that the company can take advantage of any opportunities that arise in the coming months as the world slowly emerges from the pandemic. Investors will be watching closely for developments in the coming quarters as FACTSET RESEARCH SYSTEMS works to deliver on its financial goals for FY2023. Live Quote…
Analysis – FDS Intrinsic Value Calculator
Our analysis of FACTSET RESEARCH SYSTEMS’ financials has revealed that the fair value of their stock is around $425.9, as calculated by our proprietary Valuation Line. Despite this, the current market price of their stock is only $392.6, showing that it is currently undervalued by 7.8%. This presents an interesting opportunity for investors to buy at a discounted rate. We believe that FACTSET RESEARCH SYSTEMS is an attractive investment option, and we would encourage those looking to increase their portfolio to take advantage of this opportunity. More…
Peers
Its main competitors are London Stock Exchange Group PLC, QuoteMedia Inc, and Euromoney Institutional Investor PLC. All three companies are major players in the financial data and analytics industry, with FactSet holding a slight edge in terms of market share.
– London Stock Exchange Group PLC ($LSE:LSEG)
London Stock Exchange Group PLC has a market cap of 40.89B as of 2022, a Return on Equity of 3.86%. The company operates a number of stock exchanges in the United Kingdom, including the London Stock Exchange, which is the largest stock exchange in Europe. In addition to stock exchanges, the company also provides trading, clearing, and settlement services for a variety of financial instruments.
– QuoteMedia Inc ($OTCPK:QMCI)
QuoteMedia, Inc. provides digital financial content and technology solutions for the financial services industry in North America and internationally. It operates in two segments, Content and Enterprise. The Content segment offers real-time stock market quotes, news, charts, and research data through its Quotestream product suite to retail and institutional investors, media, and individual investors; and web-based solutions and data products, including Stockhouse.com, an online investment community for Canadian investors. This segment also provides premium subscription-based data products, such as Portfolio123 and MarketQA, as well as content licensing services. The Enterprise segment offers data products and services to broker-dealers, investment advisors, and other financial institutions. This segment provides technology solutions to power trading platforms, client portals, and other Web-based applications; and data integration solutions that enable the distribution of real-time content on desktop applications, mobile devices, and third-party Web sites. The company was founded in 1999 and is headquartered in Montreal, Canada.
– Euromoney Institutional Investor PLC ($LSE:ERM)
Euromoney Institutional Investor PLC is a provider of business information and research for the global financial markets. The company has a market capitalization of 1.58 billion as of 2022 and a return on equity of 2.93%. The company’s products and services include news, analysis, and research on the global financial markets, as well as data and intelligence on companies, industries, and economies. Euromoney Institutional Investor PLC is headquartered in London, the United Kingdom.
Summary
FACTSET RESEARCH SYSTEMS released its earnings report for Q2 of FY2023 on March 23 2023. The report showed significant increases in both revenue and net income, with a 19.7% increase in revenue to USD 131.6 million and a 19.5% increase in net income to USD 515.1 million. Despite this strong performance, the stock price moved down on the same day.
This could indicate that investors were expecting even higher returns, or that the market may be wary of FACTSET RESEARCH SYSTEMS’ future prospects. Investors should do their own research and analysis to determine if FACTSET RESEARCH SYSTEMS is a good investment opportunity.
