Third Quarter Fiscal 2018 Highlights
Revenues increased 8.9% or $27.8 million to $339.9 million compared with $312.1 million for the same period in fiscal 2017. Organic revenues grew 5.7% to $332.5 million during the third quarter of 2018 from the prior year period. The increase is primarily due to higher sales of analytics products, content and technology solutions (CTS) and wealth management solutions.
Annual Subscription Value (ASV) increased to $1.36 billion at May 31, 2018 compared with prior year ASV of $1.28 billion. The organic ASV growth rate, which excludes the effects of acquisitions, dispositions, and foreign currency, was 5.3%.
Operating margin decreased to 27.4% compared with 28.1% in the prior year period. The decrease in operating margin is primarily related to restructuring actions and certain one-time administrative expenses. Adjusted operating margin decreased to 31.0% compared with 31.9% in the prior year period.
Diluted earnings per share (EPS) increased to $1.91 compared with $1.66 for the same period in fiscal 2017. Adjusted diluted EPS for the third quarter rose 17.8% to $2.18 compared with $1.85 in the prior period boosted primarily by the U.S. Tax Cuts and Jobs Act (“TCJA”).
The Company’s effective tax rate for the third quarter was 16.5%, as compared with 23.2% a year ago, primarily due to the TCJA.
FactSet increased its quarterly dividend by $0.08 or 14.3% per share to $0.64 marking the 13th consecutive year the Company has increased dividends, highlighting its continued commitment to returning value to shareholders.
“We are making progress integrating and cross selling our acquisitions resulting in important wins this quarter, particularly within Analytics. We continue to innovate with the launch of the Open:FactSet marketplace and enhancing our risk offering. We believe we have a solid pipeline for the fourth quarter and expect to finish fiscal 2018 in our guidance range,” said Phil Snow, FactSet CEO.
FactSet Reports Strong Revenue and EPS Growth in Third Quarter 2018
