FactSet's (FDS) fiscal Q4 revenue will likely beat consensus estimates due to the strength of the company's pipeline as well as its consistent execution, RBC Capital Markets said in a note Thursday.
Analysts said their fiscal Q4 margin estimate for the company is below consensus due to higher incentive costs linked to the "robust" growth of annual subscription volume. EPS estimate, however, is above consensus due to the "strong top-line momentum and disciplined capital allocation," they added.
RBC said it expects FactSet to issue fiscal 2027 guidance calling for organic annual subscription volume growth of $115 million to $165 million, up about 4.5% to 6.5% year on year, as well as "modest margin expansion," which would lead to about 7% to 10% EPS growth.
Consensus estimates for annual subscription volume growth are at $151 million and FactSet's guidance will likely reflect "prudent conservatism against a tougher comparable period," the analysts said.
For fiscal 2027, RBC said it expects the company to issue a revenue outlook of about $2.62 billion to $2.64 billion, up by about 5.9% to 6.7% year on year, and adjusted EPS of between $19.40 and $20, up by about 8.8% to 12.2% year on year.
RBC has a sector perform rating on FactSet, while increasing the company's price target to $304 from $240.
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