As you might know, FactSet Research Systems Inc. (NYSE:FDS) recently reported its first-quarter numbers. It looks like the results were a bit of a negative overall. While revenues of US$569m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.1% to hit US$3.89 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for FactSet Research Systems

Taking into account the latest results, the most recent consensus for FactSet Research Systems from 19 analysts is for revenues of US$2.30b in 2025. If met, it would imply a modest 3.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 9.8% to US$15.57. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.30b and earnings per share (EPS) of US$15.69 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$473, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on FactSet Research Systems, with the most bullish analyst valuing it at US$536 and the most bearish at US$390 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the FactSet Research Systems' past performance and to peers in the same industry. It's pretty clear that there is an expectation that FactSet Research Systems' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.5% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.5% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than FactSet Research Systems.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$473, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for FactSet Research Systems going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for FactSet Research Systems that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.