Jun. 20 at 11:20 PM
$FDS Heads up alert! Only three days until upcoming earnings on Monday, 6/23/2025 for
$FDS
Bearish (2.5)
In analyzing FactSet Research Systems (FDS), we observe a challenging landscape ahead for the company, particularly as it prepares to report its third-quarter fiscal 2025 earnings.
Recent reports indicate that while revenue growth is anticipated across all regions, there is a concerning expectation of a slight dip in earnings per share (EPS).
The consensus among analysts has become increasingly cautious, as exemplified by Evercore ISI's decision to lower its price target for FDS from
$470 to
$448, reflecting concerns over macroeconomic volatility and changes in leadership.
The anticipated EPS of
$4.26 falls short of broader market expectations, indicating a potential earnings miss.
Furthermore, the announcement of CEO Phil Snow's impending retirement has added to investor anxiety, contributing to the recent decline in stock price.
From a quantitative perspective, FactSet's current P/E ratio stands at approximately 25, which is on the higher side compared to industry peers like Morningstar and S&P Global, which are trading at P/E ratios of 22 and 20, respectively.
The expected EPS growth rate is projected at a modest 5% for the coming quarters, a stark contrast to the 10% growth seen in prior fiscal years.
Revenue forecasts for the fiscal year remain stable, yet the downward revisions in EPS estimates have raised red flags among investors.
The overall competitive landscape for financial data platforms is intensifying, as competitors are increasingly leveraging AI and advanced analytics capabilities to enhance their offerings, further complicating FactSet's market position.
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Looking ahead to the upcoming earnings report, market expectations are cautious.
Analysts anticipate a slight decrease in EPS, with the consensus estimate falling to
$4.26, down from previous forecasts.
Historically, FactSet has delivered mixed results in its earnings announcements, often exceeding revenue expectations but occasionally falling short on EPS.
This upcoming earnings release, scheduled for June 23, 2025, will be pivotal.
A failure to meet the lowered EPS expectations could lead to further downward pressure on the stock.
Analysts will be closely monitoring any commentary on revenue growth and operational challenges, as well as the impact of the leadership transition on company performance.
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In terms of sector performance, FactSet operates within the financial data and technology sector, which has shown overall resilience amid economic fluctuations.
However, recent trends indicate a shift as investors seek more growth-oriented opportunities, particularly in technology-driven financial services.
As firms increasingly invest in digital transformation, FactSet's ability to innovate and adapt will be crucial in maintaining its competitive edge and ensuring sustainable growth going forward.
- Funds were net sellers of
$FDS during the previous reporting quarter.
- Top 4 funds with large holdings in
$FDS:
- American Capital Management Inc, MV:
$81MM. Fund Rank: 82%
www.americancapitalmanagement.com
- Adage Capital P, MV:
$6MM. Fund Rank: 79%
www.adagecapital.com
- Taylor Frigon Capital Management LLC, MV:
$2MM. Fund Rank: 86%
www.taylorfrigon.com
- Dock Street Asset Management Inc, MV:
$1MM. Fund Rank: 79%
dockstreet.com
- Last 10 days performance: -1%
- Last 30 days performance: -9%
- Last 90 days performance: -2%
Some of the latest news articles:
- Title: FactSet to Report Q3 Earnings: What's in Store for the Stock?
Publication Date: 6/20/2025 2:58:00 PM, Source: yahoo
URL: https://finance.yahoo.com/news/factset-report-q3-earnings-whats-145800873.html?.tsrc=rss
- Title: Update: Jabil Shares Rise After Q3 Results Beat Expectations
Publication Date: 6/17/2025 5:11:37 PM, Source: yahoo
URL: https://finance.yahoo.com/news/jabil-shares-rise-q3-results-171137673.html?.tsrc=rss
- Title: FactSet price target lowered to
$448 from
$470 at Evercore ISI
Publication Date: 6/17/2025 1:25:23 PM, Source: yahoo
URL: https://finance.yahoo.com/news/factset-price-target-lowered-448-132523074.html?.tsrc=rss
- Title: SailPoint Fiscal Q1 Net Loss Narrows, Revenue Rises; 2026 Outlook Lifted
Publication Date: 6/11/2025 11:51:16 AM, Source: yahoo
URL: https://finance.yahoo.com/news/sailpoint-fiscal-q1-net-loss-115116028.html?.tsrc=rss
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