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What's in the Cards for Broadridge (BR) in Q4 Earnings?

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Broadridge Financial Solutions Inc. (BR - Free Report) is set to report fourth-quarter 2017 results on Aug 10. Last quarter, the company posted a positive earnings surprise of 16.95%. Let's see how things are shaping up for this announcement.

Factors at Play

Broadridge reported impressive third-quarter results. Year-over-year comparisons on both the counts were favorable driven by higher recurring revenues, contribution from Net New Business, higher distribution revenues and acquisition-related synergies. The company reaffirmed fiscal 2017 guidance.

We remain optimistic about Broadridge’s strategic acquisitions, product launches, share repurchase program and dividend paying initiatives. We also believe that its close association with Accenture (ACN - Free Report) will be beneficial in the long run.

However, competition from DST Systems Inc. and pricing pressure remain headwinds.

Broadridge Financial Solutions, Inc. Price and EPS Surprise

 

Earnings Whispers

Our proven model does not conclusively show that Broadridgewill beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP: Broadridge ESP is 0.00% since both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.68 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Broadridge’s Zacks Rank #2 when combined with a 0.00% ESP makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.

Stocks to Consider

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

CACI International, Inc. (CACI - Free Report) , with an Earnings ESP of +1.83% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Broadcom Limited (AVGO - Free Report) , with an Earnings ESP of +2.57% and a Zacks Rank #2.

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