FactSet shares drop after projecting 2023 revenue at bottom of forecast

Key takeaways

  • FactSet shares fell after the company said it expected revenue for the year to be at the lower end of its guidance.
  • Third quarter earnings and sales exceeded estimates, and the board increased the share buyback program.
  • CEO Phil Snow said the results “ reflect the resilience of our business in an uncertain environment.”

Shares of FactSet Research Systems (FDS) fell 4.5% on Thursday after the financial data provider reported a lukewarm full-year sales outlook.

FactSet expects fiscal 2023 revenue to be at the bottom of its previous forecast of $2.08 billion to $2.10 billion as subscription growth slows. However, it raised its adjusted earnings per share (EPS) forecast by $0.25 to a range of $14.75 to $15.15.

This happened product as the company reported third-quarter sales rose 8.4% to $529.8 million and earnings were $3.79 per share. Both were better than analysts' estimates.

CEO Phil Snow said the company is satisfied with the results, “which testify to the resilience of our business in an uncertain environment.

FactSet noted that its advice of directors agreed to expand its share buyback program up to $300 million. 

Despite the drop on Thursday, FactSet shares have changed little since the start of the year.

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Source: investopedia.com

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