Broadridge's (BR) Q1 Earnings Beat Estimates, Increase Y/Y
Broadridge Financial Solutions, Inc. BR reported impressive first-quarter fiscal 2024 results, with both earnings and revenues beating the Zacks Consensus Estimate.
Adjusted earnings of $1.09 per share beat the consensus mark by 16% and increased 29.8% year over year. Total revenues of $1.43 billion beat the consensus mark by 4.1% and were up 11.5% year over year. Recurring revenues of $871 million increased 8% from the year-ago quarter’s level.
Shares of the company have gained 27.4% over the past year against the 5.5% decline of the industry it belongs to.
Let’s check out the numbers in detail.
Revenues by Segment
Revenues in the Investor Communication Solutions segment increased 12% from the year-ago quarter’s level to $1.03 billion and beat our estimate of $1.02 billion. The Global Technology and Operations segment’s revenues came in at $402 million, beating our estimate of $350.3 million and increasing 11% from the year-ago quarter’s figure. The improvement was mainly driven by net new business and internal growth.
Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise
Broadridge Financial Solutions, Inc. price-consensus-eps-surprise-chart | Broadridge Financial Solutions, Inc. Quote
Operating Results
Adjusted operating income of $199 million increased 33% year over year. This compares favorably with our expectation of an adjusted operating income of $165.6 million, up 10.3% year over year.
Adjusted operating income margin of 13.9% increased 220 basis points (bps) year over year. This compares with our expectation of an adjusted operating income margin of 12.1%, up 40 bps year over year.
Balance Sheet and Cash Flow
Broadridge exited the quarter with cash and cash equivalents of $234 million compared with $252.3 million at the end of the prior quarter. Long-term debt was $3.7 billion compared with the prior quarter’s $2.2 billion.
The company used $62 million of cash in operating activities, and capex was $4.7 million in the quarter. It paid out $85.6 million in dividends in the reported quarter.
Fiscal 2024 Guidance
Broadridge expects recurring revenue growth to be 6-9%. Adjusted earnings per share growth is expected to be 8-12%. Adjusted operating income margin is estimated to be around 20%.
Broadridge currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
The Interpublic Group of Companies, Inc. IPG posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings were 70 cents per share, which lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.
Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. EFX reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from the year-ago figure.
EFX’s total revenues of $1.32 billion missed the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from the year-ago figure on a reported basis and 6.5% on a local-currency basis.
Fiserv, Inc. FI reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings per share of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and jumped 8.2% year over year.
FI’s organic revenue growth was 12% in the quarter. This was driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.
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Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report
Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report
Equifax, Inc. (EFX) : Free Stock Analysis Report
Fiserv, Inc. (FI) : Free Stock Analysis Report
