Broadridge’s (BR) Q2 Earnings Beat Estimates, Increase Y/Y

Broadridge Financial Solutions, Inc. BR reported impressive second-quarter fiscal 2024 results, with both earnings and revenues beating the Zacks Consensus Estimate.

Adjusted earnings of 92 cents per share beat the consensus mark by 4.6% and increased 1% year over year. Total revenues of $1.41 billion beat the consensus mark by 0.9% and were up 9% year over year.

Recurring revenues of $899 million increased 7% year over year on a reported basis and 6% on a constant currency basis.

Shares of the company have gained 33% over the past year compared with the 11% rally 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 9% from the year-ago quarter’s level to $1 billion and beat our estimate of $991.3 million. The Global Technology and Operations segment’s revenues came in at $405 million, beating our estimate of $396.6 million and increasing 9% 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 $174 million increased 1% year over year. Adjusted operating income margin of 12.4% decreased 100 basis points (bps) year over year. This compares with our expectation of an adjusted operating income margin of 12.1%, up 130 bps year over year.

Balance Sheet and Cash Flow

Broadridge exited the quarter with cash and cash equivalents of $277 million compared with $234 million at the end of the prior quarter. Long-term debt was $3.7 billion, flat with the prior quarter’s tally.

The company generated $189.8 million of cash in operating activities and capex was $12.1 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

Robert Half RHI reported better-than-expected fourth-quarter 2023 results.

Quarterly earnings of 83 cents per share beat the consensus mark by 1.2% but declined 39.4% year over year. RHI’s revenues of $1.5 billion beat the consensus mark by a slight margin but decreased 14.7% year over year.

Aptiv APTV reported mixed fourth-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

Adjusted earnings of $1.4 per share beat the Zacks Consensus Estimate by 8.5% and increased 10.2% year over year. APTV’s revenues of $4.9 billion missed the Zacks Consensus Estimate by 0.5% but increased 6% year over year.

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