FactSet Research Systems Inc.: Recent Performance Highlights and Future Outlook
With a market capitalization of $18.7 billion, FactSet Research Systems Inc. (FDS) stands out as a prominent player in offering integrated financial information, analytical tools, and technology solutions to the global investment sector. Headquartered in Norwalk, Connecticut, the firm caters to both buy-side and sell-side clients, providing services designed to enhance investment workflows.
The Nature of FactSet’s Offerings
FDS falls within the “large-cap” stock category, defined by companies valued at $10 billion or higher. The firm’s services encompass portfolio analytics, risk management tools, market intelligence, and enterprise data solutions, all of which are accessible through customizable platforms and APIs. This diverse portfolio serves a variety of professionals, including wealth managers, asset owners, and investment bankers, making FactSet a vital partner for managing investments, conducting research, and optimizing performance.
Recent Stock Performance
Despite its strengths, the financial data provider’s stock has dipped 1.7% from its 52-week high of $499.87, attained in November. Over the past three months, shares of FDS have gained nearly 6%, lagging behind the iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI), which surged by 14.3% in the same timeframe.
Looking at the longer term, FDS saw a rally of 15.6% over the past six months, but it underperformed compared to the IAI’s 25.8% gain. Additionally, its shares have only risen 4.7% over the past year, while IAI’s growth stands at 36.5% in the same period.
Positive Q1 2025 Results
On December 19, FDS shares rose 3.5% following the release of its Q1 2025 results, which surpassed market expectations and showcased robust operational performance. The company reported adjusted earnings per share of $4.37, exceeding the consensus estimate and marking a 6.1% year-over-year increase. Revenue reached $568.7 million, surpassing forecasts and reflecting a 4.9% year-over-year growth. Notably, the Organic Annual Subscription Value (ASV) alongside professional services grew 4.5% year-over-year to $2.3 billion, bolstered by significant contributions from the U.S. and Asia-Pacific regions. Additionally, FactSet has raised its fiscal 2025 revenue guidance and EPS projection to $16.80 – $17.40, hinting at ongoing growth potential.
Comparative Analysis with Competitors
When comparing performance with its competitor, MSCI Inc. (MSCI), FDS has some catching up to do. MSCI has seen a 24.3% rise over the past six months and an 8.1% increase over the past year.
Analyst Sentiment and Future Outlook
Owing to its recent underperformance, analysts express caution regarding FDS’s outlook. The stock currently holds a consensus rating of “Hold” from 18 analysts covering it. As of this writing, FDS trades above the mean price target of $476.57.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart
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