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Broadridge (BR) to Post Q4 Earnings: What's in the Cards?

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Broadridge Financial Solutions, Inc. (BR - Free Report) is set to report fourth-quarter fiscal 2020 results on Aug 11.

Q4 Expectations

The Zacks Consensus Estimate for revenues is pegged at $1.33 billion, which indicates a 9.5% increase from the year-ago quarter’s reported figure. Higher Global Technology and Operations, and Investor Communication Solutions segment revenues along with increased trading volumes stemming from pandemic-related market uncertainty are likely to have boosted the top line in the fiscal fourth quarter. The consensus mark for Global Technology and Operations revenues is pegged at $309 million, which indicates 22.1% year-over-year growth. Net revenues in the Investor Communication Solutions segment is expected to increase 5.7% year over year to $1,046 million, per the consensus mark.

In the fiscal third quarter, Broadridge’s total revenues of $1.25 billion increased 2% year over year.

Higher organic and inorganic revenues are expected to have driven earnings. The consensus mark for fourth-quarter earnings is pegged at $2.10, which indicates year-over-year rise of 22.1%.

In the fiscal third quarter, adjusted earnings of $1.67 per share were up 5% on a year-over-year basis.

What Our Model Says

Our proven model conclusively predicts an earnings beat for Broadridge this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Broadridge has an Earnings ESP of 2.70% and currently carries a Zacks Rank #2.You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Here are some other stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these also have the right combination of elements to beat on second-quarter 2020 earnings.

Mogo Inc. (MOGO - Free Report) has an Earnings ESP of +42.86% and a Zacks Rank #3.

Houghton Mifflin Harcourt Company has an Earnings ESP of +42.22% and a Zacks Rank #3.

Waste Connections (WCN - Free Report) has an Earnings ESP of +3.33% and a Zacks Rank #3.

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