Yahoo Finance Results: FactSet Research Systems Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts
Investors in FactSet Research Systems Inc. (NYSE:FDS) had a good week, as its shares rose 4.5% to close at US$425 following the release of its third-quarter results. It looks like a credible result overall - although revenues of US$553m were in line with what the analysts predicted, FactSet Research Systems surprised by delivering a statutory profit of US$4.09 per share, a notable 16% above expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for FactSet Research Systems
After the latest results, the 19 analysts covering FactSet Research Systems are now predicting revenues of US$2.32b in 2025. If met, this would reflect a modest 6.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 18% to US$15.93. In the lead-up to this report, the analysts had been modelling revenues of US$2.33b and earnings per share (EPS) of US$15.85 in 2025. 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.
The analysts reconfirmed their price target of US$437, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on FactSet Research Systems, with the most bullish analyst valuing it at US$500 and the most bearish at US$355 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await FactSet Research Systems shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that FactSet Research Systems' revenue growth is expected to slow, with the forecast 5.1% annualised growth rate until the end of 2025 being well below the historical 9.8% p.a. growth over the last five years. Compare this to the 268 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.4% per year. So it's pretty clear that, while FactSet Research Systems' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple FactSet Research Systems analysts - going out to 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 2 warning signs for FactSet Research Systems you should be aware of.
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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.
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