Broadridge Financial Solutions, Inc.

Broadridge Financial Solutions, Inc. (BR - Snapshot Report) has been on a very nice rally since mid November, with its share price climbing from just above $9 to a recent high near $17 on another strong quarter and a bullish earnings projection.

Company Description

Broadridge Financial Solutions, Inc. provides technology-based outsourcing solutions to the financial services industry. The company was spun off from Automatic Data Processing in March of 2007 and has a market cap of $2.29 billion.

Second-Quarter Results

Broadridge stepped up and reported solid second-quarter results on Feb 3 that were ahead of expectations. Revenue actually dropped slightly, by 1%, to $459.2 million, mostly due to unfavorable currency exchange rates. Income came in at $29.9 million, producing earnings of 21 cents per share, 3 cents ahead of the consensus estimate.

This was the fourth time in the last four quarters that the company has surprised and beat analyst estimates, having done so by an average of 3 cents, or 2.56%.

Guidance Reaffirmed

After the solid quarter, Broadridge went ahead and reaffirmed its 2009 full-year earnings guidance, saying it expects earnings to come in between $1.49 and $1.59 per share.

Valuations

Based upon the current-year estimate, pegged at $1.48 per share with 6 months left in the fiscal year, this stock has a forward P/E multiple of 11X.

The Chart

Shares of RB have been rallying since finding a short-term bottom just above $9 on Nov 21. Since then, this stock has topped off just shy of the $17 mark. Take a look at the chart below.