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FactSet (FDS) to Report Q3 Earnings: What's in the Cards?

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FactSet Research Systems Inc. (FDS - Free Report) is scheduled to report third-quarter fiscal 2020 results on Jun 25, before the bell.

The company has trailing four-quarter positive earnings surprise of 6.5%, on average. FactSet’s earnings have surpassed the Zacks Consensus Estimate in all of the last four quarters.

The stock has gained 11.8% year to date, outperforming the 7.7% growth of the industry it belongs to.

Q3 Expectations

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $377.5 million, which indicates growth of 3.6% from the year-ago quarter’s actual figure. Higher sales of analytics, wealth management, as well as content and technology solutions are likely to have benefited the top line. In second-quarter fiscal 2020, revenues of $369.8 million increased 4.2% year over year.

The consensus estimate for earnings is pegged at $2.44, which suggests year-over-year decline of 6.9%. Higher expenses related to business continuity and the pandemic are expected to have weighed on the bottom line. In second-quarter fiscal 2020, adjusted earnings of $2.55 per share increased 5.4% year over year.

What Our Model Says

Our proven model predicts an earnings beat for FactSet this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

FactSet has an Earnings ESP of +1.09% and a Zacks Rank #3.

Stocks to Consider

Here are a few stocks that investors can consider, as our model shows that these have the right combination of elements to beat on earnings this season.

Kforce (KFRC - Free Report) , with an Earnings ESP of +24.53% and a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CoreLogic , with an Earnings ESP of +5.05% and a Zacks Rank of 2.

Republic Services (RSG - Free Report) , with an Earnings ESP of +10.04% and a Zacks Rank #3.

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