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Broadridge (BR) to Report Q4 Earnings: What's in Store?

Zacks Equity Research

Broadridge Financial Solutions Inc. BR is set to report fourth-quarter fiscal 2019 results on Aug 1, before the bell.

The company’s shares have gained 39.7% year to date, significantly outperforming the 32.2% rally of the industry it belongs to.

What to Expect This Time

The Zacks Consensus Estimate for revenues is pegged at $1.22 billion, indicating a 7.3% decline from the year-ago quarter’s actual figure. The expected decline is likely to be due to lower distribution revenues and foreign exchange headwinds.

Notably, as an impact of implementation of the ASC 606 accounting standard, a considerable portion of distribution revenues went in to the third quarter that would have otherwise been reported in the fourth quarter, under the previous ASC 605.

In the fiscal third quarter, Broadridge’s total revenues of $1.23 increased 14.3% year over year.

The consensus mark for earnings is pegged at $1.72, indicating year-over-year decrease of 7.5%. In the fiscal third quarter, adjusted earnings of $1.59 per share were up 59% on a year-over-year basis.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially when the company is seeing negative estimate revisions. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Broadridge has an Earnings ESP of 0.00% and a Zacks Rank #2.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on second-quarter 2019 earnings:

S&P Global SPGI has an Earnings ESP of +0.94% and a Zacks Rank #2.  The company is slated to report results on Aug 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Clean Harbors CLH has an Earnings ESP of +3.23% and a Zacks Rank #3. The company is slated to report results on Jul 31.

Green Dot GDOT has an Earnings ESP of +0.89% and a Zacks Rank #3. The company is slated to release results on Aug 7.

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