FactSet fiscal 3Q net income rises 11 pct

FactSet posts 11 pct increase in fiscal 3rd-qtr net income, matches Wall Street predictions

NORWALK, Conn. (AP) -- FactSet Research Systems Inc. said Tuesday that its fiscal third-quarter net income rose 11 percent. The company's adjusted profit matched Wall Street expectations and its outlook for the current period was in line with expectations.

But its shares dropped more than 5 percent in morning trading as it said the market remained tough for selling services to clients who provide merger and acquisition services and stock research.

For the quarter ended May 31, FactSet earned $53.4 million, or $1.20 per share, up from $48 million, or $1.05 per share, a year earlier. Excluding one-time items, the company reported an adjusted profit of $1.15 per share.

Revenue rose 6 percent to $214.6 million from $202.3 million.

Analysts, on average, expected earnings of $1.15 per share on $215 million in revenue, according to FactSet. 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 continued to deal with a tough "sell-side" environment. "Sell-side" clients provide merger and acquisition advisory services and stock research.

U.S. revenue increased 6 percent to $147 million, while international revenue increased 6 percent to $68 million. The company added four new clients during the quarter, bringing its total to 2,400 as of May 31.

For the current quarter, FactSet said it expects to post a profit of between $1.18 and $1.21 per share on $218 million to $221 million in revenue. Analysts expect earnings of $1.20 per share on $220.2 million in revenue.

FactSet shares fell $5.56 to $98.20 in morning trading Tuesday. Its shares have traded in a 52-week range of $86.88 to $104.85.