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EARNINGS: on first glance, @FactSet $FDS had a good quarter, but looking deeper its a mixed bag:
Non-GAAP figures YoY for the quarter:
Revenue +2.6%
Expenses -0.5%**
Op Income +8.6%
EPS +9.2%
Stock is up in early trading, but all is not as it appears...pic.twitter.com/AioZccxoX2
I asterisk the expense growth because GAAP figures tell a different story:
GAAP YoY growth for the quarter:
Revenue +2.6%
Expenses +2.1% 
Op Income +3.8%
EPS +11.0%
Non GAAP expenses & op income look much better than GAAP figures, but EPS is LOWER - why?
$FDS
The reason is two-fold:
1) @FactSet adjusted expenses down by $5.5 million for "professional fees associated with the ongoing three year investment plan and facilities costs"
2) They adjusted taxes UP to account for 1x tax items in 2019 and 2020
$FDSpic.twitter.com/84BmkZxRZU
Shown more clearly below - on a GAAP basis, it looks like lower taxes accounted for a good chunk of growth.
On a Non-GAAP basis, it looks like expense savings:
$FDSpic.twitter.com/thEcUrBJla
My point is this: it's debatable, but I don't think the $5.5 million should've been adjusted out of expenses. This makes the $FDS quarter look less rosy (Op income only +4% instead of +9%)
On top of this, $FDS took sales and revenue guidance down for FY 2020, reflecting a more difficult sales environment from COVID-19.
FactSet's stable revenue model means expenses can come down much faster than revenue in the short term.
I fear 2021 will look much worse.
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