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Broadridge (BR) Q1 Earnings & Revenues Top Estimates, Up Y/Y
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Broadridge Financial Solutions, Inc. (BR - Free Report) delivered strong first-quarter fiscal 2021 results, beating the Zacks Consensus Estimate on both counts.
Adjusted earnings of 98 cents per share beat the consensus estimate by 55.6% and improved 44% year over year. Total revenues of $1 billion beat the consensus mark by 5.8% and were up 7% year over year. The company generated closed sales of $33 million in the quarter, down 13% year over year.
So far this year, shares of Broadridge have gained 13.4% against 5% decline of the industry it belongs to.
Revenues by Segment
Revenues in the Investor Communication Solutions segment increased 7% from the year-ago quarter’s level to $753 million.
The segment’s recurring fee revenues were up 8% to $671 million. Event-driven fee revenues increased 13% to $45.5 million. Distribution revenues increased 7% to $752.9 million on lower event-driven activity.
Global Technology and Operations segment's recurring fee revenues came in at $296 million, up 8% year over year. This improvement was driven by acquisitions and organic growth. Higher equity trading volumes benefited the segment’s internal growth.
Operating Results
Adjusted operating income of $151 million improved 45% year over year. Adjusted operating income margin increased to 14.8% from 10.9% in the prior-year quarter.
Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise
Broadridge exited the quarter with cash and cash equivalents of $356.6 million compared with the $476.6 million witnessed at the end of the prior quarter. Long-term debt was $1.8 billion compared with the $1.4 billion recorded at the end of the previous quarter.
The company used $44.2 million of cash in operating activities and capex was $14.3 million in the quarter. Broadridge paid out $62.2 million in dividends in the reported quarter.
Updated Fiscal 2021 Guidance
Broadridge expects total revenue growth in the range of 1-4% (previous range was 0-4%). It anticipates recurring revenue growth of 3-6 %( previous range was 2-6%). Adjusted EPS growth is expected to be 6% to 10% (previous estimation was 4-10%). Adjusted operating income margin is estimated to be up by around 100 basis points (unchanged from previous guidance). Closed sales are anticipated to be between $190 million and $235 million (unchanged from previous guidance).
Equifax (EFX - Free Report) reported better-than-expected third-quarter 2020 results, with adjusted earnings of $1.87 per share beating the Zacks Consensus Estimate by 16.2% and rising 26.4% on a year-over-year basis. The reported figure exceeded the guidance of $1.30-$1.40.
The Interpublic Group of Companies (IPG - Free Report) reported better-than-expected third-quarter 2020 adjusted earnings of 53 cents per share, which beat the Zacks Consensus Estimate by 43.2% and rose 8.2% on a year-over-year basis.
IQVIA Holdings (IQV - Free Report) reported solid third-quarter 2020 adjusted earnings per share of $1.63, which beat the consensus mark by 8% and improved 1.9% on a year-over-year basis. The reported figure was above the guidance of $1.47-$1.55.
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The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
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Broadridge (BR) Q1 Earnings & Revenues Top Estimates, Up Y/Y
Broadridge Financial Solutions, Inc. (BR - Free Report) delivered strong first-quarter fiscal 2021 results, beating the Zacks Consensus Estimate on both counts.
Adjusted earnings of 98 cents per share beat the consensus estimate by 55.6% and improved 44% year over year. Total revenues of $1 billion beat the consensus mark by 5.8% and were up 7% year over year. The company generated closed sales of $33 million in the quarter, down 13% year over year.
So far this year, shares of Broadridge have gained 13.4% against 5% decline of the industry it belongs to.
Revenues by Segment
Revenues in the Investor Communication Solutions segment increased 7% from the year-ago quarter’s level to $753 million.
The segment’s recurring fee revenues were up 8% to $671 million. Event-driven fee revenues increased 13% to $45.5 million. Distribution revenues increased 7% to $752.9 million on lower event-driven activity.
Global Technology and Operations segment's recurring fee revenues came in at $296 million, up 8% year over year. This improvement was driven by acquisitions and organic growth. Higher equity trading volumes benefited the segment’s internal growth.
Operating Results
Adjusted operating income of $151 million improved 45% year over year. Adjusted operating income margin increased to 14.8% from 10.9% in the prior-year quarter.
Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise
Broadridge Financial Solutions, Inc. price-consensus-eps-surprise-chart | Broadridge Financial Solutions, Inc. Quote
Balance Sheet and Cash Flow
Broadridge exited the quarter with cash and cash equivalents of $356.6 million compared with the $476.6 million witnessed at the end of the prior quarter. Long-term debt was $1.8 billion compared with the $1.4 billion recorded at the end of the previous quarter.
The company used $44.2 million of cash in operating activities and capex was $14.3 million in the quarter. Broadridge paid out $62.2 million in dividends in the reported quarter.
Updated Fiscal 2021 Guidance
Broadridge expects total revenue growth in the range of 1-4% (previous range was 0-4%). It anticipates recurring revenue growth of 3-6 %( previous range was 2-6%). Adjusted EPS growth is expected to be 6% to 10% (previous estimation was 4-10%). Adjusted operating income margin is estimated to be up by around 100 basis points (unchanged from previous guidance). Closed sales are anticipated to be between $190 million and $235 million (unchanged from previous guidance).
Broadridge currently carries a Zacks Rank #3 (Hold). 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 third-quarter 2020 results, with adjusted earnings of $1.87 per share beating the Zacks Consensus Estimate by 16.2% and rising 26.4% on a year-over-year basis. The reported figure exceeded the guidance of $1.30-$1.40.
The Interpublic Group of Companies (IPG - Free Report) reported better-than-expected third-quarter 2020 adjusted earnings of 53 cents per share, which beat the Zacks Consensus Estimate by 43.2% and rose 8.2% on a year-over-year basis.
IQVIA Holdings (IQV - Free Report) reported solid third-quarter 2020 adjusted earnings per share of $1.63, which beat the consensus mark by 8% and improved 1.9% on a year-over-year basis. The reported figure was above the guidance of $1.47-$1.55.
Have You Seen Zacks’ 2020 Election Stock Report?
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Check out Zacks’ 2020 Election Stock Report >>