December 15, 2009 / 3:50 PM / in 8 years

UPDATE 2-Factset Research Q2 view narrowly misses est, shrs down

* Q1 rev $155.2 mln vs est $155.9 mln

* Q1 EPS $0.74 in-line

* Sees Q2 EPS $0.73-$0.75 vs est. $0.75

* Shares down nearly 10 pct (Adds conference call and analyst comments, shares)

By Mansi Dutta

BANGALORE, Dec 15 (Reuters) - Financial information services provider FactSet Research Systems Inc (FDS.N) projected second-quarter results slightly below estimates, as customers remain cautious on spending, sending shares down nearly 10 percent.

“It’s difficult to predict when we’ll get back to double digit growth ... Even though markets are up over 20 percent in the U.S. year-to-date, not all of our clients have participated in that growth,” a company executive said in a conference call with analysts.

There’s still a number of firms that are struggling and still rationalizing their cost structure, so things are a little bit choppy, the executive added.

Benchmark Co analyst Edward Atorino said the company’s customers, which are basically Wall Street firms, are holding back on their budgets as the year draws to a close.

For the second quarter, the company expects earnings of 73 cents to 75 cents a share on revenue of $154 million to $158 million.

Analysts are looking for earnings of 75 cents a share on revenue of $158.31 million, according to Thomson Reuters I/B/E/S.

Factset competes with Thomson Reuters (TRI.TO) TRIL.L (TRI.N), privately owned Bloomberg, RiskMetrics Group Inc and Dealogic Plc DL.L.

Q1 FALLS IN-LINE

For the first quarter, Factset’s net income rose to $36.1 million, or 74 cents a share, from $35.6 million, or 73 cents a share, a year ago.

Revenue was nearly flat at $155.2 million.

Analysts were expecting earnings of 74 cents a share, on revenue of $155.9 million.

Annual subscription value -- which the company defines as revenue for the next 12 months from all annual subscription services currently being supplied to clients -- rose $2 million during the quarter, and the number of users rose by 100 to 37,400.

The company approved a $100 million expansion to its share buyback program.

Shares of Norwalk, Connecticut-based company were trading down nearly 10 percent at $68.75 Tuesday on the New York Stock Exchange.

For alerts, please double click [ID:nWNBB1300] (Editing by Anil D‘Silva)

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