We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Broadridge (BR) Q4 Earnings and Revenues Beat Estimates
Read MoreHide Full Article
Broadridge Financial Solutions, Inc. (BR - Free Report) reported strong fourth-quarter fiscal 2020 results beating the Zacks Consensus Estimate on both counts.
Adjusted earnings of $2.15 per share beat the consensus estimate by 2.4% and improved 25% year over year. Total revenues of $1.36 billion beat the consensus mark by 2.7% and were up 12% year over year. The company generated closed sales of $112 million in the quarter, up 55% year over year.
Revenues by Segment
Revenues in the Investor Communication Solutions segment declined 12% from the year-ago quarter level to $1.1 billion.
Global Technology and Operations segment's recurring fee revenues came in at $314 million, up 19% year over year. This improvement was driven by acquisitions and organic growth. Higher trading volumes resulting from market volatility and onboarding of new sales benefited the segment’s internal growth.
Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise
Adjusted operating income of $335 million improved 25% year over year. Adjusted operating income margin increased to 24.6% from 22.1% in the prior-year quarter.
Balance Sheet and Cash Flow
Broadridge exited the quarter with cash and cash equivalents of $476.6 million compared with the $402.1 million witnessed at the end of the prior quarter. Long-term debt was $1.4 billion compared with the $1.7 billion recorded at the end of the previous quarter.
The company generated $442.6 million of cash in operating activities and capex was $14.2 million in the quarter. Broadridge paid out $62 million in dividends in the reported quarter.
Fiscal 2021 Guidance
Broadridge expects revenue growth in the range of 0-4%. It anticipates recurring revenue growth of 2-6%. Adjusted EPS growth is expected to be 4% to 10%. Adjusted operating income margin is estimated to be up by around 100 basis points. Closed sales are anticipated to be between $190 million and $235 million.
Equifax (EFX - Free Report) reported better-than-expected second-quarter 2020 adjusted earnings of $1.60 per share, which beat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis.
IQVIA Holdings (IQV - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.18, which beat the consensus mark by 12.4% but decreased 22.9% on a year-over-year basis.
Robert Half (RHI - Free Report) reported second-quarter 2020 earnings of 41 cents per share beat the consensus mark by 17% but were down 58% year over year.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Image: Bigstock
Broadridge (BR) Q4 Earnings and Revenues Beat Estimates
Broadridge Financial Solutions, Inc. (BR - Free Report) reported strong fourth-quarter fiscal 2020 results beating the Zacks Consensus Estimate on both counts.
Adjusted earnings of $2.15 per share beat the consensus estimate by 2.4% and improved 25% year over year. Total revenues of $1.36 billion beat the consensus mark by 2.7% and were up 12% year over year. The company generated closed sales of $112 million in the quarter, up 55% year over year.
Revenues by Segment
Revenues in the Investor Communication Solutions segment declined 12% from the year-ago quarter level to $1.1 billion.
Global Technology and Operations segment's recurring fee revenues came in at $314 million, up 19% year over year. This improvement was driven by acquisitions and organic growth. Higher trading volumes resulting from market volatility and onboarding of new sales benefited the segment’s internal growth.
Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise
Broadridge Financial Solutions, Inc. price-consensus-eps-surprise-chart | Broadridge Financial Solutions, Inc. Quote
Operating Results
Adjusted operating income of $335 million improved 25% year over year. Adjusted operating income margin increased to 24.6% from 22.1% in the prior-year quarter.
Balance Sheet and Cash Flow
Broadridge exited the quarter with cash and cash equivalents of $476.6 million compared with the $402.1 million witnessed at the end of the prior quarter. Long-term debt was $1.4 billion compared with the $1.7 billion recorded at the end of the previous quarter.
The company generated $442.6 million of cash in operating activities and capex was $14.2 million in the quarter. Broadridge paid out $62 million in dividends in the reported quarter.
Fiscal 2021 Guidance
Broadridge expects revenue growth in the range of 0-4%. It anticipates recurring revenue growth of 2-6%. Adjusted EPS growth is expected to be 4% to 10%. Adjusted operating income margin is estimated to be up by around 100 basis points. Closed sales are anticipated to be between $190 million and $235 million.
Broadridge currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Equifax (EFX - Free Report) reported better-than-expected second-quarter 2020 adjusted earnings of $1.60 per share, which beat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis.
IQVIA Holdings (IQV - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.18, which beat the consensus mark by 12.4% but decreased 22.9% on a year-over-year basis.
Robert Half (RHI - Free Report) reported second-quarter 2020 earnings of 41 cents per share beat the consensus mark by 17% but were down 58% year over year.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Click Here, See It Free >>