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Broadridge (BR) to Report Q2 Earnings: What's in the Cards?

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Broadridge Financial Solutions, Inc. (BR - Free Report) is set to report its second-quarter fiscal 2024 results on Feb 1, before the bell.

The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and matched once, delivering an average surprise of 5.4%.

Q2 Expectations

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.39 billion, which indicates a 7.7% increase from the year-ago quarter’s reported figure. Expected growth is likely to have been driven by internal growth and new businesses.

Our estimate for net revenues at Investor Communication Solutions is pegged at $991.3 million, which suggests a year-over-year increase of 7.8%. Our estimate for net revenues in the Global Technology and Operations segment is pegged at $396.6 million, which indicates a year-over-year rise of 6.2%.

The consensus mark for earnings in the to-be-reported quarter is pegged at 88 cents per share, which suggests a year-over-year decline of 3.3%. We expect an increase in operating expenses in the quarter, weighing on the bottom line.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Broadridge this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Broadridge has an Earnings ESP of 0.00% and a Zacks Rank #2.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this season:

Gartner (IT - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $1.59 billion, indicating growth of 5.4%. For earnings, the consensus mark stands at $2.78, 24.6% lower than the year-ago quarter. The company beat the Zacks Consensus Estimate in all the past four quarters, with an average surprise of 34.4%.

IT currently has an Earnings ESP of +0.81% and a Zacks Rank #2. The company will declare its fourth quarter results on Feb 6. You can see the complete list of today’s Zacks #1 Rank stocks here.

Fiserv (FI - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $4.69 billion, indicating growth of 7.5%. For earnings, the consensus mark is pegged at $2.15, 12.6% higher than the year-ago quarter. The company beat the Zacks Consensus Estimate in two of the past four quarters and matched on the other two instances. It has an average surprise of 0.58%.

FI currently carries an Earnings ESP of +0.05% and a Zacks Rank #2. The company will declare its fourth quarter results on Feb 6.

Rollins (ROL - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $750.09 million, indicating growth of 13.4%. For earnings, the consensus mark is pegged at 21 cents, 23.5% higher than the year-ago quarter. The company beat the Zacks Consensus Estimate in three of the past four quarters and matched on the other instance. It has an average surprise of 7.2%.

ROL currently carries an Earnings ESP of +2.44% and a Zacks Rank #3. The company will declare its fourth quarter results on Feb 14.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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