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Broadridge's Q3 Earnings Beat Estimates, Rise Year Over Year

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Broadridge Financial Solutions, Inc. (BR - Free Report) reported mixed third-quarter fiscal 2025 results, with earnings beating the Zacks Consensus Estimate but revenues lagging the same.

Adjusted earnings of $2.44 per share beat the consensus mark by 2.1% and increased 9.4% from the year-ago quarter. Total revenues of $1.81 billion missed the consensus mark by 2.5% but were up 5% year over year.

Recurring revenues of $1.2 billion increased 7% year over year on a reported basis and 8% on a constant currency basis.

The company’s stock has gained 26.1% over the past year compared with the 25.8% rally of the industry it belongs to and the 11.5% growth of the Zacks S&P 500 Composite.

Other Key Q3 Metrics for BR

Revenues in the Investor Communication Solutions segment increased 4% from the year-ago quarter’s level to $1.35 billion, below our estimate of $1.4 billion. The Global Technology and Operations segment’s revenues amounted to $464 million, beating our estimate of $452.3 million but increasing 9% on a year-over-year basis.

Adjusted operating income of $405.2 million increased 9.7% from the year-ago quarter. Adjusted operating income margin of 22.4% increased 100 basis points year over year.

Broadridge exited the quarter with a cash and cash equivalents balance of $317.2 million compared with $292.8 million at the end of the preceding quarter. Long-term debt was $3.4 billion, flat with the prior quarter.

The company generated $360.7 million of cash from operating activities, and capex was $11.5 million in the quarter. It paid out $103 million in dividends.

BR’s Fiscal 2025 Guidance

The company expects recurring revenue growth to be 6-8%. 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.

Earnings Snapshot

Automatic Data Processing, Inc. (ADP - Free Report) has reported impressive third-quarter fiscal 2025 results. 

ADP’s earnings per share of $3.06 beat the consensus estimate by 3.4% and increased 6.3% from the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) 

Total revenues of $5.6 billion surpassed the consensus estimate by 1.1% and grew 5.7% on a year-over-year basis. 

The Interpublic Group of Companies, Inc. (IPG - Free Report) has reported mixed first-quarter 2025 results. 

IPG’s adjusted earnings of 33 cents per share surpassed the Zacks Consensus Estimate by 10% but decreased 8.3% from the year-ago quarter.  

Revenues before billable expenses (net revenues) of $2 billion missed the consensus estimate by a slight margin and declined 8.3% year over year.

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