Yahoo Finance FactSet Research Systems Inc. (NYSE:FDS) Just Released Its First-Quarter Earnings: Here's What Analysts Think
It's been a good week for FactSet Research Systems Inc. (NYSE:FDS) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.6% to US$470. FactSet Research Systems reported US$542m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$3.84 beat expectations, being 2.7% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for FactSet Research Systems
Taking into account the latest results, the most recent consensus for FactSet Research Systems from 18 analysts is for revenues of US$2.21b in 2024. If met, it would imply a modest 4.0% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 14% to US$14.42. Before this earnings report, the analysts had been forecasting revenues of US$2.22b and earnings per share (EPS) of US$14.58 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$450. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic FactSet Research Systems analyst has a price target of US$500 per share, while the most pessimistic values it at US$372. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the FactSet Research Systems' past performance and to peers in the same industry. We would highlight that FactSet Research Systems' revenue growth is expected to slow, with the forecast 5.4% annualised growth rate until the end of 2024 being well below the historical 9.2% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that FactSet Research Systems is also expected to grow slower than other industry participants.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that FactSet Research Systems' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$450, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on FactSet Research Systems. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple FactSet Research Systems analysts - going out to 2026, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for FactSet Research Systems that you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
