FactSet Research (FDS) came out with quarterly earnings of $ 3.27 per share, beating the Zacks Consensus Estimate of $ 2.96 per share. This compares to revenues of $ 2.72 per share last year. These figures are adjusted for non -recurring items.
This quarterly report represents a surprise revenue of 10.47%. A quarter ago, this financial data firm was expected to post earnings of $ 2.99 per share when it actually made earnings of $ 3.25, delivering a surprise 8.70%.
In the last four quarters, the company has exceeded consensus EPS estimates three times.
FactSet, which belongs to the Zacks Business – Information Services industry, posted revenues of $ 431.12 million for the quarter ended February 2022, which exceeded the Zacks Consensus Estimate by 0.97%. This compares to last year’s revenues of $ 391.79 million. The company topped consensus revenue estimates four times in the last four quarters.
Maintaining immediate stock price movement based on recently released numbers and expectations on future earnings is highly dependent on management’s comment on the earnings call.
Shares of FactSet have lost about 12.2% since the beginning of the year compared to the S&P 500’s decline of -6.5%.
What’s Next for FactSet?
While FactSet hasn’t performed well in the market so far this year, the question that enters the minds of investors is: what’s next for the stock?
There is no easy answer to this important question, but a reliable measure that can help investors address it is the company’s earnings outlook. This not only includes current consensus earnings expectations for the coming quarter (s), but also how its expectations have changed recently.
Empirical research shows a strong correlation between near-term stock movements and trends in changes in earnings estimates. Investors can track such revisions on their own or rely on a tried and tested rating tool like Zacks Rank, which has an impressive track record in harnessing the power of changes to estimate earnings. .
Prior to the release of these earnings, the trend of estimate changes for FactSet: mixed. Although the size and direction of changes in the estimate may change following the company’s recently released earnings report, the current status will translate to Zacks Rank #3 (Hold) for the stock. Thus, the shares are expected to perform in line with the market in the near future. You can find the complete list of Zacks #1 Rank (Strong Buy) stocks today here.
It will be interesting to see how the estimates for the coming quarters and current financial year change in the coming days. The current consensus estimate of EPS is $ 3.06 to $ 434.35 million in revenues for the coming quarter and $ 12.39 to $ 1.73 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can also have a material impact on stock performance. In terms of Zacks Industry Rank, Business – Information Services is currently in the top 43% of the 250 plus Zacks industry. Our research shows that the top 50% of industries ranked in Zacks are more than 50% below by a factor of more than 2 to 1.
Another stock from the broader Zacks Business Services sector, ManpowerGroup (MAN), has yet to report results for the quarter ended March 2022.
This staffing company is expected to post quarterly earnings of $ 1.56 per share in its upcoming report, representing a year-over-year change of +40.5%. The consensus EPS estimate for the quarter was revised 1.7% lower over the past 30 days to current levels.
ManpowerGroup’s revenues are expected to be $ 5.11 billion, up 3.7% from the previous quarter.
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FactSet Research Systems Inc. (FDS): Free Stock Analysis Report
ManpowerGroup Inc. (MAN): Free Stock Analysis Report
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