FactSet fiscal 2Q net income falls 5 pct

March 19, 2013

NORWALK, Conn. (AP) -- FactSet posted a 5 percent decline in second-quarter net income Tuesday due in part to hefty stock-option expenses.

Adjusted for stock expenses, the company beat profit expectations on Wall Street, though revenue came up just shy and shares slid 3 percent in early trading, despite a strong outlook.

For the quarter ended Feb. 28, FactSet earned $44.5 million, or $1 per share, down from $46.7 million, or $1.02 per share, in the same quarter the year before. Excluding $11 million in stock-option expenses and $4.9 million in tax benefits, the company said it posted an adjusted profit of $1.14 per share for the recent quarter.

Revenue rose 7 percent to $213.1 million from $199.4 million.

Analysts, on average, expected a profit of $1.10 per share on $213.3 million in revenue. Collecting ratings and estimates on companies from Wall Street research analysts is one of the services FactSet provides its customers, including The Associated Press.

FactSet said that while its annual subscription value increased during the quarter, it continues to deal with a tough "sell-side" environment. "Sell-side" clients provide merger and acquisition advisory services and stock research.

U.S. revenue increased 7 percent to $146 million, while non-U.S. revenue rose 7 percent to $67.1 million. The company added 35 clients during the recent quarter bringing its total to 2,436.

FactSet Research Systems Inc. projected a third-quarter profit of between $1.14 and $1.16 per share on $213 million to $216 million in revenue. Analysts expect a profit of $1.12 per share on $217.3 million in revenue.

Shares fell $3.06 to $94.97 in early trading.