Why Financial Digital Platform FactSet Research Shares Are Declining Today
Portfolio Pulse from Lekha Gupta
FactSet Research Systems Inc (NYSE:FDS) reported Q1 FY24 sales growth of 7.4% year-over-year to $542.2 million, slightly beating consensus estimates. Adjusted EPS was $4.12, marginally above the $4.11 consensus. The company saw a net increase of 24 clients, with adjusted operating margin contracting due to higher technology expenses. FactSet repurchased shares and declared a quarterly dividend. However, it lowered its FY24 revenue and EPS outlook, leading to a 1.22% decline in its stock price.
December 19, 2023 | 2:48 pm
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NEGATIVE IMPACT
FactSet reported solid Q1 FY24 results with sales and EPS beating estimates, but lowered FY24 guidance and saw a contraction in adjusted operating margin. The stock declined by 1.22%.
Despite beating Q1 estimates, the lowering of FY24 revenue and EPS outlook, along with a contraction in adjusted operating margin, likely contributed to the negative investor sentiment and the decline in stock price. The share repurchase and dividend declaration may provide some support, but the reduced guidance is a significant factor for the short-term impact.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100