(FDS) - FactSet Research Systems, Inc - Six analysts upped their estimates for this year

FactSet Research Systems, Inc. (FDS), which was first introduced as a Growth and Income stock on Jun 22, has returned 22%. The company topped the Street’s estimate for seven straight quarters. FDS has been able to post 41 consecutive quarters of sequential revenue growth. Consensus estimates have been on the rise for FDS. The company has a current dividend yield of 0.43% and a five-year average dividend yield of 0.55%. Full Analysis FactSet Research Systems, Inc. is a leading provider of global financial and economic data and analytics to the investment community worldwide. Combining more than 200 databases into its own dedicated online service, the company also provides the tools to download, combine and manipulate financial data for investment analysis. FDS is up 22% since it was first featured as a Growth and Income pick on Jun 22. With earnings estimates trending higher, coupled with the company’s strong history of beating the Street, we still feel confident about FDS’s future prospects. FDS exceeded analysts’ earnings expectations for seven consecutive quarters. Moreover, the company met or topped the consensus estimate in 15 out of the past 16 quarters. Earnings per share grew 21.1% over the past five years. On Dec 19, FDS reported first-quarter fiscal 2007 profits of 47 cents per share, compared to 38 cents in the prior-year period. Analysts were calling for 45 cents. Revenues increased 21.4% to $108.9 million, versus $89.7 million in the first quarter of fiscal 2006. FDS has been able to post 41 consecutive quarters of sequential revenue growth. Subscriptions jumped $16.9 million, while client retention rate continued to eclipse the 95% plateau. Chairman and CEO Philip A. Hadley stated, “We are pleased to report a solid first quarter. Revenues and profitability improved, while we continued to invest in areas critical for future growth.” Consensus estimates for this quarter and next jumped two cents to 48 cents and 50 cents, respectively, over the past 30 days. Five analysts submitted upward revisions for both quarters. Profit forecasts for this year have risen eight cents to $1.98 and estimates for next year climbed seven cents to $2.28 over the past month. Six analysts upped their estimates for this year and four did so for next year. Earnings per share are projected to grow 18% over the next 3-5 years. The industry is expected to grow at a 15% clip. At the end of fiscal 2006, FDS’s free cash flow stood at $97.1 million, compared to $72.4 million in 2005 and $38.5 million in 2004. As a result, on Nov 14, the Board of Directors declared a regular quarterly cash dividend of six cents per share. FDS has a current dividend yield of 0.43% and a five-year average dividend yield of 0.55%. The company’s return on equity of 25% is in line with that of the industry average. FDS is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home