FactSet Research Systems Inc. (NYSE: FDS) is a financial data and software company. It reported a 6.8% year-over-year increase in revenue to $399.6 million in Fiscal 2021 third-quarter ended May. Adjusted EPS was $2.72, down 4.9% year-over-year.
FactSet Research Systems Inc. (NYSE: FDS) pays dividends and has a stock repurchase program. It boosted its quarterly dividend by 6.5% to $0.82 per share, meaning the company has now increased its dividend for 22 consecutive years.
Factset spent $57.6 million on its stock repurchases in the fiscal third-quarter. It has 292.4 million remaining under its current repurchase program.
For the Fiscal 2021, Factset expects revenue to be in the range of $1.57 billion – $1.59 billion. It sees adjusted EPS ranging $10.75 – $11.15.
However, FactSet Research Systems Inc. (NYSE: FDS) stock comes with some risks. FDS stock faces two major risk factors: Tech and Innovation and Macro and Political.
Let’s examine this risk factors in detail. In Tech and Innovation risk, for example, Factset says it handles sensitive data that if a breach occurs, it could lose customers and face litigation.
Regarding Macro and Political risks, FactSet Research Systems Inc. (NYSE: FDS) says that operations outside the U.S. are contributing an increasing portion of its revenue. At the same time, operating outside the U.S. presents many difficulties, including changes in foreign tax laws. Additionally, the company also cited risk of a global health crisis such as the COVID-19 pandemic.
In June, Oppenheimer analyst Owen Lau assigned FactSet Research Systems Inc. (NYSE: FDS) stock a Hold rating with no price target. The analyst concurred that COVID-19 poses a downside risk to FDS stock, noting that the pandemic uncertainty could adversely impact sales.
“We are highly attracted to FactSet’s business model, historical track record, and long-term growth opportunities…Our favorable long-term view is tempered largely by persistent macro-related headwinds,” commented Lau.