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Broadridge's (BR) Q1 Earnings Surpass Estimates, Up Y/Y
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Broadridge Financial Solutions, Inc. (BR - Free Report) reported impressive first-quarter fiscal 2022 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
Adjusted earnings of $1.07 per share beat the consensus estimate by 4.9% and were up 9% year over year. Total revenues of $1.2 billion surpassed the consensus mark by 4.6% and were up 17% year over year. The company generated closed sales of $30 million in the quarter, down 6% year over year.
Shares of the company have gained 23.5% over the past year, underperforming the 37% growth of the industry it belongs to.
Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise
Revenues in the Investor Communication Solutions segment increased 14% from the year-ago quarter’s level to $854 million. Global Technology and Operations segment revenues came in at $341 million, up 21% from the year-ago quarter’s figure. The improvement was mainly driven by the Itiviti acquisition.
Revenues by Type
Recurring fee revenues of $751 million increased 16% from the year-ago quarter’s level. Event-driven fee revenues came in at $76 million, up 69% year over year. Distribution revenues increased 11% year over year to $367 million.
Operating Results
Adjusted operating income of $177 million increased 17% year over year. Adjusted operating income margin stayed flat year over year at 14.8%.
Balance Sheet and Cash Flow
Broadridge exited the quarter with cash and cash equivalents of $317 million compared with $275 million at the end of the prior quarter. Long-term debt was $4.2 billion compared with $3.9 billion at the end of the prior quarter.
The company used $135.4 million of cash in operating activities and capex was $5.7 million in the quarter. Broadridge paid out $66.8 million in dividends in the reported quarter.
Fiscal Guidance
Broadridge expects recurring revenue growth of 12-15%. Adjusted earnings per share (EPS) growth is expected to be 11-15%. Adjusted operating income margin is estimated to be up by around 19%. Closed sales are anticipated between $240 million and $280 million.
Broadridge currently carries a Zacks Rank #3 (Hold).
Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported better-than-expected third-quarter 2021 results. Adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined 1.1% on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year.
IQVIA Holdings (IQV - Free Report) reported impressive third-quarter 2021 results, with earnings per share of $2.17 beating the consensus mark by 1.9% and improving 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year.
Omnicom (OMC - Free Report) reported third-quarter 2021 adjusted earnings of $1.65 per share that beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.
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Broadridge's (BR) Q1 Earnings Surpass Estimates, Up Y/Y
Broadridge Financial Solutions, Inc. (BR - Free Report) reported impressive first-quarter fiscal 2022 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
Adjusted earnings of $1.07 per share beat the consensus estimate by 4.9% and were up 9% year over year. Total revenues of $1.2 billion surpassed the consensus mark by 4.6% and were up 17% year over year. The company generated closed sales of $30 million in the quarter, down 6% year over year.
Shares of the company have gained 23.5% over the past year, underperforming the 37% growth of the industry it belongs to.
Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise
Broadridge Financial Solutions, Inc. price-consensus-eps-surprise-chart | Broadridge Financial Solutions, Inc. Quote
Let’s check out the numbers in detail.
Revenues by Segment
Revenues in the Investor Communication Solutions segment increased 14% from the year-ago quarter’s level to $854 million. Global Technology and Operations segment revenues came in at $341 million, up 21% from the year-ago quarter’s figure. The improvement was mainly driven by the Itiviti acquisition.
Revenues by Type
Recurring fee revenues of $751 million increased 16% from the year-ago quarter’s level. Event-driven fee revenues came in at $76 million, up 69% year over year. Distribution revenues increased 11% year over year to $367 million.
Operating Results
Adjusted operating income of $177 million increased 17% year over year. Adjusted operating income margin stayed flat year over year at 14.8%.
Balance Sheet and Cash Flow
Broadridge exited the quarter with cash and cash equivalents of $317 million compared with $275 million at the end of the prior quarter. Long-term debt was $4.2 billion compared with $3.9 billion at the end of the prior quarter.
The company used $135.4 million of cash in operating activities and capex was $5.7 million in the quarter. Broadridge paid out $66.8 million in dividends in the reported quarter.
Fiscal Guidance
Broadridge expects recurring revenue growth of 12-15%. Adjusted earnings per share (EPS) growth is expected to be 11-15%. Adjusted operating income margin is estimated to be up by around 19%. Closed sales are anticipated between $240 million and $280 million.
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 Some Other Business Services Companies
Equifax (EFX - Free Report) reported better-than-expected third-quarter 2021 results. Adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined 1.1% on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year.
IQVIA Holdings (IQV - Free Report) reported impressive third-quarter 2021 results, with earnings per share of $2.17 beating the consensus mark by 1.9% and improving 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year.
Omnicom (OMC - Free Report) reported third-quarter 2021 adjusted earnings of $1.65 per share that beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.