FactSet shares drop on 4Q earnings decline, soft outlook
Published: 08:26 21 Sep 2023 EDT
FactSet Research Systems (NASDAQ:FDS) shares fell after the company reported fourth-quarter earnings that fell short of expectations and provided an outlook for 2024 that also disappointed investors.
The financial data and software company reported a 7.3% rise in revenues to $535.8 million, slightly ahead of the $535.3 million expected by Wall Street analysts.
Adjusted earnings per share declined 6.4% to $2.93, below analysts’ consensus of $3.49. FactSet attributed the decline to a one-time charge of $6.8 million and a $20 million tax provision.
"During a transformative period where technology is reshaping our industry, FactSet's open platform strategy is resonating with clients seeking new sources of growth as well as increased efficiency,” CEO Phil Snow said in a statement.
“Our unwavering commitment to innovation is putting the full power of our vast repository of connected data and analytical capabilities at our clients' fingertips.”
The company has guided for 2024 revenue in a range of $2.21 billion to $2.23 billion, implying growth of 5.7% to 6.7%, with adjusted EPS of between $15.65 and $16.15.
Ahead of the opening bell, the company’s shares were down 2.8% at $412.
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