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Is a Beat in the Cards for Broadridge (BR) in Q4 Earnings?

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Broadridge Financial Solutions, Inc. (BR - Free Report) is set to report fourth-quarter fiscal 2021 results on Aug 12.

The company has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate in three of the trailing four quarters, matching the same in one. It has an earnings surprise of 15.8%, on average.

 

Q4 Expectations

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.5 billion, which indicates an 8% increase from the year-ago quarter’s reported figure. Expected growth is likely to have been driven by internal growth, new businesses, higher trading volumes and impact of acquisitions.

The Zacks Consensus Estimate for net revenues in the Global Technology and Operations segment is pegged at $344 million, which indicates year-over-year increase of 9.5%. The consensus estimate for net revenues at Investor Communication Solutions is pegged at $1,166 million, which suggests year-over-year increase of 6.7%.

The bottom line in the to-be-reported quarter is expected to have been benefited by operating strength. The consensus mark for earnings is at $2.19 per share, which suggests year-over-year increase of 1.9%.

What Our Model Says

Our proven model 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, which is exactly 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 +1.56% and currently carries a Zacks Rank #3. You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Highlights of Q3

Broadridge Financial Solutions reported better-than-expected third-quarter fiscal 2021 results. Adjusted earnings (excluded 36 cents from non-recurring items) of $1.76 per share, surpassed the Zacks Consensus Estimate by 5.4% and increased 5% on a year-over-year basis. Total revenues of $1.39 billion also beat the consensus mark by 8.3% and rose 11% year over year.

Performance of Some Other Business Services Companies

Equifax (EFX - Free Report) reported better-than-expected second-quarter 2021 results. Adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and increased 23.8% on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 25.6% year over year.

IHS Markit’s (INFO - Free Report) second-quarter fiscal 2021 adjusted earnings per share of 81 cents beat the consensus mark by 1.3% and increased 17.4% on a year-over-year basis. Total revenues came in at $1.2 billion, surpassing the consensus mark by 3.8% and increasing 15% from the year-ago quarter’s levels.

Omnicom (OMC - Free Report) reported second-quarter 2021 adjusted earnings of $1.46 per share that beat the consensus mark by 9.8% and increased 58.7% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 6.7% and increased 27.5% year over year.