We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Broadridge Financial Solutions, Inc. (BR - Free Report) 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
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).
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 - Free Report) 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Broadridge's (BR) Q2 Earnings Beat Estimates, Increase Y/Y
Broadridge Financial Solutions, Inc. (BR - Free Report) 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 - Free Report) 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 - Free Report) 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.