FactSet Research Systems stock experienced a decline on Tuesday after the financial information application revised its fiscal-year projections downward. The company now anticipates earnings for fiscal year 2024 to range between $13.95 and $14.35 per share, compared to previous estimates of $14.20 to $14.70 per share. Additionally, revenue forecasts for the year were adjusted to fall within the range of $2.2 billion to $2.21 billion, down from the earlier projection of $2.21 billion to $2.23 billion.
Optimism Amid Macroeconomic Uncertainty
In light of the persistent uncertainty surrounding the macroeconomic landscape, FactSet's Chief Executive, Phil Snow, expressed confidence in the health of the company's business and their strategy. Snow remains optimistic about their ability to achieve business growth moving forward.
Strong First-Quarter Performance
FactSet reported earnings of $4.12 per share for the fiscal first quarter, accompanied by revenue totaling $542.2 million. These figures surpassed analysts' expectations, who had forecasted earnings of $4.11 per share on revenue of $540.3 million.
Cost-Cutting Initiatives
To streamline operations and reduce expenses, FactSet plans to implement cost-cutting measures in the second quarter. The company expects to incur charges between $10 million and $15 million as part of this effort, with some of the cost reductions involving personnel-related adjustments.
Stock Performance
Pre-market trading on Tuesday saw FactSet's stock decline by 2.9% to $445. Despite this recent setback, the stock has experienced a 14% increase thus far this year.
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