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Broadridge Financial Solutions, Inc.’s (BR - Free Report) second-quarter fiscal 2023 earnings matched the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings of 91 cents per share were up 9.6% year over year. Total revenues of $1.3 billion missed the consensus mark by 3.5% but were up 2.6% year over year.
Recurring revenues of $840 million increased 6% from the year-ago quarter. The company generated closed sales of $65 million in the quarter, down 20% year over year.
Shares of the company have gained 5.1% over the past year compared with the 5.2% rise 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 3% from the year-ago quarter to $919 million. Global Technology and Operations segment’s revenues were $373 million, up 2% from the year-ago quarter. The improvement was mainly driven by new sales and internal growth.
Operating Results
Adjusted operating income of $173 million increased 23% year over year. Adjusted operating income margin of 11.2% decreased 220 basis points (bps) year over year.
Balance Sheet and Cash Flow
Broadridge exited the quarter with cash and cash equivalents of $280 million compared with $227.1 million at the end of the prior quarter. Long-term debt was $4.1 billion, flat with the previous quarter.
The company generated $123.1 million in cash from operating activities and capex was $10.4 million in the quarter. Broadridge paid out $85.3 million in dividends in the reported quarter.
Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise
Broadridge expects recurring revenue growth of 6-9%. Adjusted earnings per share growth is expected to be 7-11%. Adjusted operating income margin is estimated to be up by 50 bps. Closed sales are anticipated between $270 million and $310 million.
Recent Performance of Some Other Business Services Companies
Robert Half International Inc. (RHI - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
RHI’s quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) reported better-than-expected second-quarter fiscal 2023 results.
ADP’s adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago quarter. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago quarter.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive third-quarter fiscal 2023 results, with both earnings and revenues beating the Zacks Consensus Estimate. Quarterly adjusted earnings per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.
BAH’s total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.
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Broadridge (BR) Q2 Earnings Meet Estimates, Rise Y/Y
Broadridge Financial Solutions, Inc.’s (BR - Free Report) second-quarter fiscal 2023 earnings matched the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings of 91 cents per share were up 9.6% year over year. Total revenues of $1.3 billion missed the consensus mark by 3.5% but were up 2.6% year over year.
Recurring revenues of $840 million increased 6% from the year-ago quarter. The company generated closed sales of $65 million in the quarter, down 20% year over year.
Shares of the company have gained 5.1% over the past year compared with the 5.2% rise 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 3% from the year-ago quarter to $919 million. Global Technology and Operations segment’s revenues were $373 million, up 2% from the year-ago quarter. The improvement was mainly driven by new sales and internal growth.
Operating Results
Adjusted operating income of $173 million increased 23% year over year. Adjusted operating income margin of 11.2% decreased 220 basis points (bps) year over year.
Balance Sheet and Cash Flow
Broadridge exited the quarter with cash and cash equivalents of $280 million compared with $227.1 million at the end of the prior quarter. Long-term debt was $4.1 billion, flat with the previous quarter.
The company generated $123.1 million in cash from operating activities and capex was $10.4 million in the quarter. Broadridge paid out $85.3 million in dividends in the reported quarter.
Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise
Broadridge Financial Solutions, Inc. price-consensus-eps-surprise-chart | Broadridge Financial Solutions, Inc. Quote
Fiscal 2023 Guidance
Broadridge expects recurring revenue growth of 6-9%. Adjusted earnings per share growth is expected to be 7-11%. Adjusted operating income margin is estimated to be up by 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.
Recent Performance of Some Other Business Services Companies
Robert Half International Inc. (RHI - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
RHI’s quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.
Automatic Data Processing, Inc. (ADP - Free Report) reported better-than-expected second-quarter fiscal 2023 results.
ADP’s adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago quarter. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago quarter.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive third-quarter fiscal 2023 results, with both earnings and revenues beating the Zacks Consensus Estimate. Quarterly adjusted earnings per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.
BAH’s total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.