FactSet shares fall on weak guidance

Shares of FactSet Research tumble as 1st-qtr profit rises, but 2nd-qtr guidance falls short

NORWALK, Conn. (AP) -- Shares of FactSet slumped 6 percent Tuesday after the company issued weaker guidance, though it matched Wall Street expectations for the first-quarter.

For the quarter ended Nov. 30, the financial information provider earned $49.8 million, or $1.11 per share, up from $45.5 million, or 99 cents per share, in the same quarter last year.

Revenue rose 7 percent to $211.1 million from $196.4 million.

Those figures are about in line with the expectations of analyst that follow the company, according to a FactSet poll. 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 selling conditions were tough during the quarter, particularly in regards to "sell-side" clients, who provide merger and acquisition advisory services and stock research. The company added nine clients during the quarter, bringing its total to 2,401.

The company's customers include banks, investment managers, hedge funds and other financial companies. It added new clients even as many financial firms have cut jobs and spending as the European debt crisis, stock market volatility and new regulation hurt investment banking results.

But the Norwalk, Conn., company issued a disappointing guidance for the current quarter, predicting a profit of $1.11 to $1.13 per share and $212 million to $215 million in revenue. Analysts expect a profit of $1.13 per share on $216.3 million in revenue.

Shares of FactSet Research Systems Inc. fell $5.67 to $90.72 in morning trading.