FactSet Research Systems (FDS) has reported 1.55 percent fall in profit for the quarter ended Feb. 28, 2017. The company has earned $66.71 million, or $1.68 a share in the quarter, compared with $67.76 million, or $1.63 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $71.84 million, or $1.81 a share compared with $66.08 million or $1.59 a share, a year ago.
Revenue during the quarter grew 4.46 percent to $294.35 million from $281.80 million in the previous year period. Gross margin for the quarter contracted 75 basis points over the previous year period to 55.28 percent. Total expenses were 68.83 percent of quarterly revenues, down from 69.71 percent for the same period last year. This has led to an improvement of 88 basis points in operating margin to 31.17 percent.
Operating income for the quarter was $91.75 million, compared with $85.34 million in the previous year period.
However, the adjusted operating income for the quarter stood at $97.42 million compared to $93.26 million in the prior year period. At the same time, adjusted operating margin was almost stable in the quarter to 33.10 percent, when compared with prior year period.
"FactSet continues to be a leading technology partner for the investment community delivering another quarter of growth in a market that remains challenging for the financial industry. Through product innovation and acquisition, we believe we are well positioned to offer a broad suite of solutions across the enterprise for our clients critical workflows," said Phil Snow, FactSet chief executive officer.
For the third-quarter, FactSet Research Systems expects revenue to be in the range of $301 million to $307 million. The company expects operating income to grow in the range of 30 percent to 31 percent. The company expects adjusted operating income to grow in the range of 32 percent to 33 percent. The company projects diluted earnings per share to be in the range of $1.68 to $1.74. On an adjusted basis, the company projects diluted earnings per share to be in the range of $1.80 to $1.86.
Operating cash flow declinesFactSet Research Systems has generated cash of $128.06 million from operating activities during the first half, down 22.02 percent or $36.17 million, when compared with the last year period. The company has spent $95.38 million cash to meet investing activities during the first six months as against cash outgo of $290.63 million in the last year period.
The company has spent $98.50 million cash to carry out financing activities during the first six months as against cash inflow of $150.81 million in the last year period.
Cash and cash equivalents stood at stood at $155.35 million as at Feb. 28, 2017.
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