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Broadridge (BR) to Report Q2 Earnings: What's in the Cards?

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Broadridge Financial Solutions, Inc. (BR - Free Report) is set to report second-quarter fiscal 2021 results on Feb 2, before the bell.

The company has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed the same in the other two, the average beat being 5.9%.

Q2 Expectations

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.03 billion, which indicates a 5.9% increase from the year-ago quarter’s reported figure. Expected growth is likely to have been driven by acquisitions, organic growth and higher trading volumes.

The Zacks Consensus Estimate for net revenues in the Global Technology and Operations segment is pegged at $305 million, which indicates year-over-year increase of 8.5%. The consensus estimate for net revenues at Investor Communication Solutions is pegged at $754 million, which suggests year-over-year increase of 5.3%. In fiscal first quarter, Broadridge’s total revenues of $1 billion increased 7% year over year.

The bottom line in the to-be-reported quarter is expected to have been driven by operating strength. The consensus mark for earnings is at 73 cents, which indicates year-over-year growth of 37.4%. In fiscal first quarter, adjusted earnings of 98 cents per share were up 44% on a year-over-year basis.

What Our Model Says

Our proven model does not predict 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, which is not the case here. 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 0.00% and currently carries a Zacks Rank #3.

Stocks to Consider

Here are a few stocks that investors can consider, as our model shows that these have the right combination of elements to beat on earnings this season.

ManpowerGroup (MAN - Free Report) , with an Earnings ESP of +6.2% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aptiv (APTV - Free Report) , with an Earnings ESP of +2.92% and a Zacks Rank #2.

Equifax (EFX - Free Report) , with an Earnings ESP of +1.44% and a Zacks Rank of 3.

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