Financial data firm FactSet’s Q3 profit falls as clients curb spending

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(Reuters) -Financial data firm FactSet on Monday reported a fall in third-quarter profit, pressured by slower client spending amid ongoing macroeconomic uncertainty.

WHY IT IS IMPORTANT

Trade policy uncertainty under the Trump administration has prompted investors and clients to take a wait-and-see approach, dampening deal flow and demand for market-related products at FactSet.

BY THE NUMBERS

The company’s organic annual subscription value (ASV) — which indicates the revenue potential for the next 12 months from subscription services — rose 4.5% to $2.3 billion during the quarter.

On an adjusted basis, the company earned $4.27 per share for the quarter ended May 31, compared with $4.37 per share in the year-ago period.

Its revenue rose 5.9% to $585.5 million.

CONTEXT

FactSet provides financial data and tools that help investors analyze markets, manage risk, and track portfolios.

The company’s buy-side clients – including institutional asset managers, wealth managers, asset owners, hedge funds and corporate clients – accounted for 82% of organic ASV.

MARKET REACTION

Shares of the Norwalk, Connecticut-based company fell nearly 0.79% to $419 premarket. The stock has lost nearly 12.1% so far this year, compared with a 1.5% gain for the benchmark S&P 500 index.

(Reporting by Prakhar Srivastava in Bengaluru; Editing by Tasim Zahid and Shailesh Kuber)