Back to top

Image: Bigstock

Broadridge's (BR) Q1 Earnings Miss Estimates, Decline Y/Y

Read MoreHide Full Article

Broadridge Financial Solutions, Inc. ((BR - Free Report) ) reported mixed first-quarter fiscal 2023 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same.

Adjusted earnings of 84 cents per share missed the consensus mark by 3.5% and were down 21.5% year over year. Total revenues of $1.3 billion beat the consensus mark by 1.7% and were up 7.6% year over year.

Recurring revenues of $806 million increased 7% from the year-ago quarter’s level. The company generated closed sales of $29 million in the quarter, down 2% year over year.

Shares of the company have lost 16.3% over the past year compared with the 1.1% decline of the industry it belongs to.

Let’s check out the numbers in detail.

Revenues by Segment

Revenues in the Investor Communication Solutions segment increased 8% from the year-ago quarter’s level to $921 million. Global Technology and Operations segment revenues came in at $363 million, up 7% from the year-ago quarter’s figure. The improvement was mainly driven by new sales and internal growth.

Operating Results

Adjusted operating income of $150 million decreased 15% year over year. Adjusted operating income margin of 11.7% decreased 310 basis points (bps) year over year.

Balance Sheet and Cash Flow

Broadridge exited the quarter with cash and cash equivalents of $227.1 million compared with $224.7 million at the end of the prior quarter. Long-term debt was $4.1 billion compared with $3.8 billion at the end of the previous quarter.

The company used $204.5 million of cash from operating activities and capex was $5.5 million in the quarter. Broadridge paid out $75 million in dividends in the reported quarter.

Fiscal 2023 Guidance

Broadridge expects recurring revenue growth of 6-9%. Adjusted earnings per share growth are expected to be 7-11%. Adjusted operating income margin is estimated to be up by around 50 bps. Closed sales are anticipated between $270 million and $310 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.

Performances of Some Other Service Providers

Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the respective Zacks Consensus Estimate.

EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.  

Omnicom (OMC - Free Report) also reported better-than-expected third-quarter 2022 results.

OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.

The Interpublic Group of Companies (IPG - Free Report) reported third-quarter 2022 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 6.8%. The bottom line has been constant on a year-over-year basis.

IPG’s net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.

Published in