It has been about a month since the last earnings report for Broadridge Financial Solutions (BR Quick QuoteBR - Free Report) . Shares have added about 0% in that time frame, underperforming the S&P 500.

Will the recent trend continue leading up to its next earnings release, or is Broadridge Financial due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Broadridge Beats Q4 Earnings Estimates

Broadridge Financial Solutions reported mixed fourth-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

Adjusted earnings of $3.5 per share beat the Zacks Consensus Estimate by 0.6% and increased 9% from the year-ago quarter. Total revenues of $1.94 billion missed the consensus mark by 1% but were up 6% year over year.

Recurring revenues of $1.3 billion increased 5% year over year on a reported, as well as a constant currency basis.

Other Key Q4 Metrics

Revenues in the Investor Communication Solutions segment increased 6% from the year-ago quarter’s level to $1.53 billion, slightly above our estimate of $1.52 billion. The Global Technology and Operations segment’s revenues amounted to $416 million, lagging our estimate of $437.5 million but increasing 4% on a year-over-year basis.

Adjusted operating income of $559 million increased 5% from the year-ago quarter. Adjusted operating income margin of 28.8% decreased slightly year over year.

Broadridge exited the quarter with a cash and cash equivalents balance of $304.4 million compared with $235.6 million at the end of the preceding quarter. Long-term debt was $3.4 billion compared with $3.5 billion at the end of the prior quarter.

The company generated $721 million of cash in operating activities and capex was $17.8 million in the quarter. It paid out $94.3 million in dividends.

Fiscal 2025 Guidance

Broadridge expects recurring revenue growth to be 5-7%. Adjusted earnings per share growth is expected to be 8-12%. Adjusted operating income margin is estimated to be around 20%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -15.99% due to these changes.

VGM Scores

Currently, Broadridge Financial has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Broadridge Financial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Broadridge Financial belongs to the Zacks Outsourcing industry. Another stock from the same industry, Automatic Data Processing (ADP Quick QuoteADP - Free Report) , has gained 6.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.

ADP reported revenues of $4.77 billion in the last reported quarter, representing a year-over-year change of +6.5%. EPS of $2.09 for the same period compares with $1.89 a year ago.

For the current quarter, ADP is expected to post earnings of $2.20 per share, indicating a change of +5.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.

ADP has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.