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Broadridge's (BR) Q2 Earnings Surpass Estimates, Up Y/Y
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Broadridge Financial Solutions, Inc. (BR - Free Report) reported impressive second-quarter fiscal 2022 results, with earnings and revenues beating the Zacks Consensus Estimate.
Adjusted earnings of 83 cents (excluding 43 cents from non-recurring items) per share beat the consensus estimate by 2.5% and rose 13.7% year over year. Total revenues of $1.3 billion surpassed the consensus mark by 4.3% and were up 19.4% year over year. The company generated closed sales of $83 million in the quarter, up 87% year over year.
Shares of the company have gained 8.7% in the past year compared with 20.7% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Let’s check out the numbers in detail.
Revenues by Segment
Revenues in the Investor Communication Solutions segment increased 15% from the year-ago quarter’s level to $893 million. Global Technology and Operations segment revenues came in at $371 million, up 30% from the year-ago quarter’s figure. The upside was mainly driven by the Itiviti acquisition.
Revenues by Type
Recurring fee revenues of $798 million increased 19% from the year-ago quarter’s level. The uptick can be attributed to new business as well as internal and acquisition-related growth. Event-driven fee revenues came in at $65 million, up 44% year over year. The surge was backed by increased mutual fund proxy activity and mutual fund communications. Distribution revenues increased 17% year over year to $401 million. The uptick was primarily due to the increase in customer communications mailings and the recent postage rate increase.
Operating Results
Adjusted operating income of $141 million increased 19% year over year. Adjusted operating income margin stayed flat year over year at 11.2%.
Balance Sheet and Cash Flow
Broadridge exited the quarter with cash and cash equivalents of $281.2 million compared with $317 million at the end of the prior quarter. The long-term debt was $4.16 billion compared with $4.2 billion at the end of the prior quarter.
Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise
The company provided $40.8 million of cash in operating activities and capex was $12.2 million in the quarter. Broadridge paid out $74.4 million in dividends in the reported quarter.
Fiscal Guidance
Broadridge expects recurring revenue growth to be in the higher end of the 12-15% range. Adjusted earnings per share (EPS) growth is continued to be expected to be 11-15%.
Adjusted operating income margin is now estimated to be up by around 18.5% (previous guidance was around 19%). Closed sales are anticipated between $240 million and $280 million.
Robert Half International (RHI - Free Report) reported impressive third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate. Quarterly earnings of $1.53 per share beat the consensus mark by 9.3% and soared 100% year over year.
Revenues of $1.71 billion surpassed the consensus mark by 4% and increased 44% year over year on a reported basis and 43% on an as-adjusted basis. RHI currently sports a Zacks Rank #1.
Automatic Data Processing (ADP - Free Report) recently reported better-than-expected second-quarter fiscal 2022 results. Adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
Total revenues of $4.03 billion beat the consensus mark by 1.1% and improved 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.
Revenues of $600.3 million beat the consensus mark by 3.3% and improved 11.9% year over year. ROL currently carries a Zacks Rank #2.
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Broadridge's (BR) Q2 Earnings Surpass Estimates, Up Y/Y
Broadridge Financial Solutions, Inc. (BR - Free Report) reported impressive second-quarter fiscal 2022 results, with earnings and revenues beating the Zacks Consensus Estimate.
Adjusted earnings of 83 cents (excluding 43 cents from non-recurring items) per share beat the consensus estimate by 2.5% and rose 13.7% year over year. Total revenues of $1.3 billion surpassed the consensus mark by 4.3% and were up 19.4% year over year. The company generated closed sales of $83 million in the quarter, up 87% year over year.
Shares of the company have gained 8.7% in the past year compared with 20.7% growth 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 15% from the year-ago quarter’s level to $893 million. Global Technology and Operations segment revenues came in at $371 million, up 30% from the year-ago quarter’s figure. The upside was mainly driven by the Itiviti acquisition.
Revenues by Type
Recurring fee revenues of $798 million increased 19% from the year-ago quarter’s level. The uptick can be attributed to new business as well as internal and acquisition-related growth. Event-driven fee revenues came in at $65 million, up 44% year over year. The surge was backed by increased mutual fund proxy activity and mutual fund communications. Distribution revenues increased 17% year over year to $401 million. The uptick was primarily due to the increase in customer communications mailings and the recent postage rate increase.
Operating Results
Adjusted operating income of $141 million increased 19% year over year. Adjusted operating income margin stayed flat year over year at 11.2%.
Balance Sheet and Cash Flow
Broadridge exited the quarter with cash and cash equivalents of $281.2 million compared with $317 million at the end of the prior quarter. The long-term debt was $4.16 billion compared with $4.2 billion at the end of the prior quarter.
Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise
Broadridge Financial Solutions, Inc. price-consensus-eps-surprise-chart | Broadridge Financial Solutions, Inc. Quote
The company provided $40.8 million of cash in operating activities and capex was $12.2 million in the quarter. Broadridge paid out $74.4 million in dividends in the reported quarter.
Fiscal Guidance
Broadridge expects recurring revenue growth to be in the higher end of the 12-15% range. Adjusted earnings per share (EPS) growth is continued to be expected to be 11-15%.
Adjusted operating income margin is now estimated to be up by around 18.5% (previous guidance was 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.
Sectorial Snapshot
Robert Half International (RHI - Free Report) reported impressive third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate. Quarterly earnings of $1.53 per share beat the consensus mark by 9.3% and soared 100% year over year.
Revenues of $1.71 billion surpassed the consensus mark by 4% and increased 44% year over year on a reported basis and 43% on an as-adjusted basis. RHI currently sports a Zacks Rank #1.
Automatic Data Processing (ADP - Free Report) recently reported better-than-expected second-quarter fiscal 2022 results. Adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
Total revenues of $4.03 billion beat the consensus mark by 1.1% and improved 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.
Revenues of $600.3 million beat the consensus mark by 3.3% and improved 11.9% year over year. ROL currently carries a Zacks Rank #2.