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Broadridge's (BR) Q1 Earnings Surpass Estimates, Up Y/Y

·3 min read

Broadridge Financial Solutions, Inc. BR reported impressive first-quarter fiscal 2022 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

Adjusted earnings of $1.07 per share beat the consensus estimate by 4.9% and were up 9% year over year. Total revenues of $1.2 billion surpassed the consensus mark by 4.6% and were up 17% year over year. The company generated closed sales of $30 million in the quarter, down 6% year over year.

Shares of the company have gained 23.5% over the past year, underperforming the 37% growth of the industry it belongs to.

Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise

Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise
Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise

Broadridge Financial Solutions, Inc. price-consensus-eps-surprise-chart | Broadridge Financial Solutions, Inc. Quote

Let’s check out the numbers in detail.

Revenues by Segment

Revenues in the Investor Communication Solutions segment increased 14% from the year-ago quarter’s level to $854 million. Global Technology and Operations segment revenues came in at $341 million, up 21% from the year-ago quarter’s figure. The improvement was mainly driven by the Itiviti acquisition.

Revenues by Type

Recurring fee revenues of $751 million increased 16% from the year-ago quarter’s level. Event-driven fee revenues came in at $76 million, up 69% year over year. Distribution revenues increased 11% year over year to $367 million.

Operating Results

Adjusted operating income of $177 million increased 17% year over year. Adjusted operating income margin stayed flat year over year at 14.8%.

Balance Sheet and Cash Flow

Broadridge exited the quarter with cash and cash equivalents of $317 million compared with $275 million at the end of the prior quarter. Long-term debt was $4.2 billion compared with $3.9 billion at the end of the prior quarter.

The company used $135.4 million of cash in operating activities and capex was $5.7 million in the quarter. Broadridge paid out $66.8 million in dividends in the reported quarter.

Fiscal Guidance

Broadridge expects recurring revenue growth of 12-15%. Adjusted earnings per share (EPS) growth is expected to be 11-15%. Adjusted operating income margin is estimated to be up by around 19%. Closed sales are anticipated between $240 million and $280 million.

Broadridge currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Some Other Business Services Companies

Equifax EFX reported better-than-expected third-quarter 2021 results. Adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined 1.1% on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year.

IQVIA Holdings IQV reported impressive third-quarter 2021 results, with earnings per share of $2.17 beating the consensus mark by 1.9% and improving 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year.

Omnicom OMC reported third-quarter 2021 adjusted earnings of $1.65 per share that beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.


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