Broadridge Financial Solutions, Inc.’s (BR - Free Report) fourth-quarter fiscal 2022 earnings matched the Zacks Consensus Estimate and revenues beat the same.
Adjusted earnings of $2.65 per share were up 21% year over year. Total revenues of $1.7 billion beat the consensus mark by 2.7% and were up 12.5% year over year.
Recurring fee revenues of $1.2 billion increased 15% from the year-ago quarter’s level. The company generated closed sales of $112 million in the quarter, down 1% year over year.
Shares of the company have lost 9.9% over the past year, against 11.1% growth in the industry it belongs to.
Let’s check out the numbers in detail.
Revenues by Segment
Revenues in the Investor Communication Solutions segment increased 12% from the year-ago quarter’s level to $1.4 billion. Global Technology and Operations segment revenues came in at $382 million, up 18% from the year-ago quarter. The improvement was mainly driven by the Itiviti acquisition, new businesses, and internal growth.
Operating Results
Adjusted operating income of $436 million increased 25% year over year. Adjusted operating income margin of 25.3% increased 250 basis points (bps) year over year.
Balance Sheet and Cash Flow
Broadridge exited the quarter with cash and cash equivalents of $224.7 million compared with $277.2 million at the end of the prior quarter. Long-term debt was $3.9 billion compared with $4.2 billion at the end of the previous quarter.
The company generated $457.4 million of cash from operating activities and capex was $7.1 million in the quarter. Broadridge paid out $74.8 million in dividends in the reported quarter.
Fiscal 2023 Guidance
Broadridge expects recurring revenue growth of 6-9%. Adjusted earnings per share growth is expected to be 7-11%. The adjusted operating income margin is estimated to be up by around 50 bps. Closed sales are anticipated between $270 million and $310 million.
Broadridge currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Some Other Business Services Companies
Equifax (EFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.
EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.
IQVIA Holdings (IQV - Free Report) reported solid second-quarter 2022 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.
IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.
Omnicom Group (OMC - Free Report) reported impressive second-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.
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Broadridge Financial Solutions, Inc.’s (BR - Free Report) fourth-quarter fiscal 2022 earnings matched the Zacks Consensus Estimate and revenues beat the same.
Adjusted earnings of $2.65 per share were up 21% year over year. Total revenues of $1.7 billion beat the consensus mark by 2.7% and were up 12.5% year over year.
Recurring fee revenues of $1.2 billion increased 15% from the year-ago quarter’s level. The company generated closed sales of $112 million in the quarter, down 1% year over year.
Shares of the company have lost 9.9% over the past year, against 11.1% growth in the industry it belongs to.
Let’s check out the numbers in detail.
Revenues by Segment
Revenues in the Investor Communication Solutions segment increased 12% from the year-ago quarter’s level to $1.4 billion. Global Technology and Operations segment revenues came in at $382 million, up 18% from the year-ago quarter. The improvement was mainly driven by the Itiviti acquisition, new businesses, and internal growth.
Operating Results
Adjusted operating income of $436 million increased 25% year over year. Adjusted operating income margin of 25.3% increased 250 basis points (bps) year over year.
Balance Sheet and Cash Flow
Broadridge exited the quarter with cash and cash equivalents of $224.7 million compared with $277.2 million at the end of the prior quarter. Long-term debt was $3.9 billion compared with $4.2 billion at the end of the previous quarter.
The company generated $457.4 million of cash from operating activities and capex was $7.1 million in the quarter. Broadridge paid out $74.8 million in dividends in the reported quarter.
Fiscal 2023 Guidance
Broadridge expects recurring revenue growth of 6-9%. Adjusted earnings per share growth is expected to be 7-11%. The adjusted operating income margin is estimated to be up by around 50 bps. Closed sales are anticipated between $270 million and $310 million.
Broadridge currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Some Other Business Services Companies
Equifax (EFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.
EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.
IQVIA Holdings (IQV - Free Report) reported solid second-quarter 2022 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.
IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.
Omnicom Group (OMC - Free Report) reported impressive second-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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