FactSet Tops Estimates Again

Financial data and analytical application provider FactSet reported fiscal fourth-quarter net income increased 31% to $30.7 million, or $0.60/share, topping analyst expectations of $0.56. Revenues rose 23% to $129.5M, mostly in-line with estimates. FactSet forecasts fiscal Q1-2008 (ending Nov. 30) revenues between $131M to $135M, with operating margins between 31.5% to 33.0% and an effective tax rate of 34.0% to 35.0%. Analysts had forecast revenues of $132.4M, on average. FactSet said its client retention rate remained above 95% during fiscal Q4. Free cash flows climbed 45% y/y to $43M. Also, the company repurchased 726,000 shares for $46M and now has 48.3M shares outstanding as of the end of August. FactSet has $57.2M remaining for buybacks. Shares of FactSet lost 1.1% to $64.22 on Monday.

Sources: Press release, Associated Press, MarketWatch
Commentary: FactSet Research Systems Has Been Catching My Eye • FactSet: A Good Run Doesn't Mean a Stock is Too Expensive • FactSet Beats By a Penny, Guidance Tops Estimates
Stocks/ETFs to watch: FDS. Competitors: RTRSY, TOC

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