William Blair Reiterates Outperform Rating on FactSet Research Ahead of Earnings (FDS)

William Blair & Company is out with an analyst note this morning, where they reiterate their Outperform rating on shares of FactSet Research Systems Inc. (NYSE: FDS); they did not provide a price target.

FactSet Research Systems will report third-quarter fiscal 2010 results Tuesday, June 15, before the market open and will host a conference call at 11:00 a.m. Eastern time.

The analysts said, “We project revenue up 3.9% year-over-year to $160.3 million, which is in line with the consensus estimate and toward the high end of management’s guidance of $157 million to $161 million. We are modeling GAAP EPS of $0.76, which are a penny below the consensus estimate of $0.77 and management’s guidance for $0.75 to $0.77. We anticipate ASV to increase 4.1% year-over-year (up 0.8% sequentially) to $640 million, as we expect gradual improvements in the market environment as well as continued momentum, with the “New FactSet” platform driving additional selling opportunities through improved content and functionality.”

William Blair also noted, “FactSet recently acquired Market Metrics, a market research firm focused on advisor-sold investments and insurance products which conducts surveys of financial advisors, brokers, research analysts, and gatekeepers to help senior managers to better understand their competitive strengths and weaknesses. While we hope to receive additional detail on the deal during the upcoming conference call, we believe the transaction fits with FactSet’s strategy of providing customers with more proprietary content.”

They closed by saying, “Shares of FDS currently trade at 21 times and 11 times our fiscal 2011 fully diluted GAAP EPS and EBITDA estimates of $3.27 and $283.8 million, respectively. We maintain our Outperform rating, as we continue to view FactSet as one of the better franchises in our coverage universe and believe the stock offers investors an attractive risk/reward opportunity over the long term. We believe shares look increasingly attractive for new money at levels dipping below 11 times our 2011 EBITDA estimate.”