U.S. Markets open in 6 hrs 17 mins

Will Tax Cut Aid Broadridge Financial (BR) in Q4 Earnings?

Zacks Equity Research
1 / 3

Will Tax Cut Aid Broadridge Financial (BR) in Q4 Earnings?

Weak event-driven revenues to hurt Broadridge Financial's (BR) top line in fourth-quarter fiscal 2018.

Broadridge Financial Solutions, Inc. BR is scheduled to report fourth-quarter fiscal 2018 earnings on Aug 7, before the opening bell. The company’s shares have returned 50% over the past year compared with the industry’s rise of 17.4%.

 

Here are the expectations.

Revenues

The Zacks Consensus Estimate for revenues is pegged at $1.33 billion, indicating a decline of 1.41% on a year-over-year basis. The downside is likely to be caused by a significant fall in event-driven revenues. The company expects event-driven revenues to decline 30-40% in the upcoming quarterly release.

Tax Cuts to Aid Earnings

The consensus estimate for earnings per share is pegged at $1.88, indicating year-over-year growth of 9.9%. Strong operations and the 2017 tax reform policy (Tax Cuts and Jobs Act) are likely to boost the company’s bottom line. However, increased investments in digital, AI, cloud and blockchain are likely to offset bottom-line growth.

Broadridge Financial Solutions, Inc. Price and EPS Surprise

 

Broadridge Financial Solutions, Inc. Price and EPS Surprise | Broadridge Financial Solutions, Inc. Quote

What Does Our Predictive Model Say

According to our 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. However, that is not the case as highlighted below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP : Broadridge has an Earnings ESP of +0.44% as the Most Accurate Estimate is at $1.89 per share, while the Zacks Consensus Estimate is pegged at $1.88.

Zacks Rank : However, Broadridge carries a Zacks Rank #4 (Sell), which lowers the predictive power of ESP.

Stocks That Warrant a Look

Investors interested in the broader Business Services Sector may check out the following companies with the right combination elements to beat estimates in the next release.

JetPay Corporation JTPY has an Earnings ESP of +14.29% and a Zacks Rank #3. The company will release second-quarter 2018 results on Aug 10. You can see the complete list of today’s Zacks #1 Rank stocks here.

EVO Payments, Inc EVOP has an Earnings ESP of +9.09% and a Zacks Rank #3. The company will release second-quarter 2018 results on Aug 8.

GreenSky, Inc GSKY has an Earnings ESP of +1.27% and a Zacks Rank #3. The company will release second-quarter 2018 results on Aug 7.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report
 
JetPay Corporation (JTPY) : Free Stock Analysis Report
 
GreenSky, Inc. (GSKY) : Free Stock Analysis Report
 
EVO Payments, Inc. (EVOP) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.