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Broadridge's (BR) Q2 Earnings Surpass Estimates, Up Y/Y

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Broadridge Financial Solutions, Inc. (BR - Free Report) reported impressive second-quarter fiscal 2022 results, with earnings and revenues beating the Zacks Consensus Estimate.

Adjusted earnings of 83 cents (excluding 43 cents from non-recurring items) per share beat the consensus estimate by 2.5% and rose 13.7% year over year. Total revenues of $1.3 billion surpassed the consensus mark by 4.3% and were up 19.4% year over year. The company generated closed sales of $83 million in the quarter, up 87% year over year.

Shares of the company have gained 8.7% in the past year compared with 20.7% growth of the industry it belongs to.

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Let’s check out the numbers in detail.

Revenues by Segment

Revenues in the Investor Communication Solutions segment increased 15% from the year-ago quarter’s level to $893 million. Global Technology and Operations segment revenues came in at $371 million, up 30% from the year-ago quarter’s figure. The upside was mainly driven by the Itiviti acquisition.

Revenues by Type

Recurring fee revenues of $798 million increased 19% from the year-ago quarter’s level. The uptick can be attributed to new business as well as internal and acquisition-related growth. Event-driven fee revenues came in at $65 million, up 44% year over year. The surge was backed by increased mutual fund proxy activity and mutual fund communications. Distribution revenues increased 17% year over year to $401 million. The uptick was primarily due to the increase in customer communications mailings and the recent postage rate increase.

Operating Results

Adjusted operating income of $141 million increased 19% year over year. Adjusted operating income margin stayed flat year over year at 11.2%.

Balance Sheet and Cash Flow

Broadridge exited the quarter with cash and cash equivalents of $281.2 million compared with $317 million at the end of the prior quarter. The long-term debt was $4.16 billion compared with $4.2 billion at the end of the prior quarter.

Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise

 

Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise

Broadridge Financial Solutions, Inc. price-consensus-eps-surprise-chart | Broadridge Financial Solutions, Inc. Quote

 

The company provided $40.8 million of cash in operating activities and capex was $12.2 million in the quarter. Broadridge paid out $74.4 million in dividends in the reported quarter.

Fiscal Guidance

Broadridge expects recurring revenue growth to be in the higher end of the 12-15% range. Adjusted earnings per share (EPS) growth is continued to be expected to be 11-15%.

Adjusted operating income margin is now estimated to be up by around 18.5% (previous guidance was 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.

Sectorial Snapshot

Robert Half International (RHI - Free Report) reported impressive third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate. Quarterly earnings of $1.53 per share beat the consensus mark by 9.3% and soared 100% year over year.  

Revenues of $1.71 billion surpassed the consensus mark by 4% and increased 44% year over year on a reported basis and 43% on an as-adjusted basis. RHI currently sports a Zacks Rank #1.

Automatic Data Processing (ADP - Free Report) recently reported better-than-expected second-quarter fiscal 2022 results. Adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.

Total revenues of $4.03 billion beat the consensus mark by 1.1% and improved 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).

Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.

Revenues of $600.3 million beat the consensus mark by 3.3% and improved 11.9% year over year. ROL currently carries a Zacks Rank #2.

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