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FactSet (NYSE:FDS) (NASDAQ:FDS) has reported its results for the fourth quarter of fiscal 2024, delivering a solid performance across various financial metrics. The company announced Q4 GAAP revenues of $562.2 million, marking a 4.9% increase from the same period in 2023. This growth reflects the company’s ability to maintain and expand its market position despite challenging economic conditions.
Additionally, FactSet’s organic Q4 ASV plus professional services amounted to $2,272.8 million, up 4.8% year over year. This metric, which captures the company’s recurring revenue streams, highlights the sustained demand for FactSet’s services. The company’s Q4 GAAP operating margin stood at 22.7%, showing an improvement of approximately 110 basis points from the previous year. Furthermore, the adjusted operating margin reached 35.8%, up 240 basis points from the prior year, indicating improved operational efficiency.
FactSet’s earnings performance also saw significant improvements. The Q4 GAAP diluted EPS was $2.32, up 38.1% from the prior year, while the adjusted diluted EPS was $3.74, up 23.8% year over year. These figures underscore the company’s strong profitability and its ability to deliver value to shareholders.
FactSet Research Reports Better than Expected Q4
Comparing FactSet’s current performance against expectations reveals a positive surprise for investors. Analysts had projected an EPS of $3.62 for the quarter, but FactSet exceeded this expectation with an adjusted diluted EPS of $3.74. This represents a notable beat, reflecting the company’s robust financial management and operational execution.
On the revenue front, the expectations were set at $547.22 million. FactSet outperformed these projections by achieving GAAP revenues of $562.2 million. This revenue beat of approximately $15 million underscores the company’s effective sales strategies and strong market demand for its products and services. Such performance not only builds investor confidence but also sets a positive tone for the company’s future growth prospects.
The company’s ability to surpass both EPS and revenue expectations highlights its resilience and strategic prowess in navigating market challenges. Investors and analysts are likely to view these results favorably, as they indicate a strong foundation for continued growth.
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Guidance
FactSet has provided its fiscal 2025 guidance, which offers a glimpse into the company’s future performance expectations. The company anticipates organic ASV growth of 4% to 6%, reflecting continued demand for its core services. GAAP revenues are expected to be in the range of $2,285 to $2,305 million, suggesting steady revenue growth.
FactSet also projects an adjusted operating margin in the range of 36% to 37%, indicating ongoing efforts to enhance operational efficiency. The adjusted diluted EPS for fiscal 2025 is expected to be between $16.80 and $17.40. This guidance demonstrates the company’s confidence in its ability to maintain profitability while investing in growth initiatives.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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