FactSet Reports Strong Earnings Growth in First Quarter 2018
December 19, 2017
Issues annual guidance for fiscal 2018
NORWALK, Conn., Dec. 19, 2017 (GLOBE NEWSWIRE) -- FactSet (the “Company”) (NYSE:FDS) (NASDAQ:FDS), a global provider of integrated financial information, analytical applications, and industry-leading service, today announced its results for the first quarter ended November 30, 2017.
First Quarter 2018 Highlights
Revenues increased 14.3% or $41.1 million to $329.1 million compared with $288.1 million for the same period in fiscal 2017. Organic revenues grew 5.8% to $304.3 million during the first quarter of 2018 from the prior year period.
Operating margin decreased to 27.1% compared to 31.4% in the prior year period. The decrease in operating margin is primarily related to $7.1 million in restructuring actions initiated by the Company. Adjusted operating margin decreased to 31.7% compared with 33.0% in the prior year period.
Diluted earnings per share (“EPS”) increased to $1.77 compared with $1.66 for the same period in fiscal 2017. Adjusted diluted EPS for the first quarter rose 16.6% to $2.04 compared with $1.75 in the prior period. Adjusted diluted EPS for the first quarter of 2018 included a $0.09 impact from the adoption of an accounting standard update, which impacted the Company’s accounting for employee share-based payment transactions.
Annual Subscription Value (“ASV”) increased to $1.32 billion at November 30, 2017 compared with prior year ASV of $1.17 billion. Organic ASV, which excludes the effects of acquisitions, dispositions and foreign currency increased 5.1%.
The Company’s effective tax rate for the first quarter was 18.3%, as compared to 25.9% a year ago primarily due to the aforementioned accounting standard update and income tax benefits related to settlements with taxing authorities. Excluding income tax benefits, the current year annual effective tax rate was 24.9%, a decrease from 25.9% a year ago.
FactSet issued annual guidance for fiscal 2018 and discontinued quarterly guidance on a go forward basis. Organic ASV growth for fiscal 2018 is expected to be in the range of 4.9% to 6.5%. Please see “Business Outlook” section of this press release for detailed guidance metrics.
The Company plans to host an investor day on April 17, 2018 in New York City.
“We are making meaningful progress in integrating our new acquisitions and are excited about our expanding suite of workflow-based solutions. We enter fiscal year 2018 with strong earnings growth and we see positive ASV momentum in our second quarter,” said Phil Snow, FactSet CEO.
FactSet Research Systems Inc. - FactSet Reports Strong Earnings Growth in First Quarter 2018
