FactSet Research Systems’ Upcoming Q4 Earnings Preview

RBC Capital analysts provided their outlook on FactSet Research Systems Inc. (NYSE:FDS) ahead of the upcoming Q4 earnings announcement on September 22.

The analysts expect a modest beat to Q4 ASV of $2.005 billion (18.7% year-over-year), above the Street estimate of $1.971 billion. Revenues are estimated to be $485 million (up 17.8% year-over-year), roughly in line with the street estimate of $487 million. The analysts model EPS of $2.90, in line with the 2022 guidance but below the Street estimate of $3.19; however, given the solid track record and the margin expansion opportunity, the analysts wouldn't be surprised if the company beats the estimates.

Moreover, the analysts see the company guiding full 2023 margins expansion of 50-75bps, in line with mid-term guidance, ASV growth of 7-8%, modestly below mid-term guidance of 8-9% but still a robust growth profile despite macroeconomic uncertainty.