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Broadridge Financial Solutions, Inc. (BR - Free Report) reported mixed third-quarter fiscal 2023 results with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Adjusted earnings of $2.05 per share beat the consensus mark by 2% and our estimate by 1% and increased 6.2% year over year. Total revenues of $1.65 billion missed the consensus mark and our estimate, both by a slight margin, but were up 7.3% year over year.
Recurring revenues of $1.08 billion increased 8% from the year-ago quarter’s level. The company generated closed sales of $62 million in the quarter, up 8% year over year.
Shares of the company have gained 5.5% over the past year against the 2.4% 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 $1.26 billion. The Global Technology and Operations segment’s revenues came in at $388 million, up 4% from the year-ago quarter’s figure. The improvement was mainly driven by new sales and internal growth.
Operating Results
Adjusted operating income of $345 million increased 10% year over year. Adjusted operating income margin of 21% increased 60 basis points (bps) year over year.
Balance Sheet and Cash Flow
Broadridge exited the quarter with cash and cash equivalents of $331.6 million compared with $280 million at the end of the prior quarter. Long-term debt was $4.1 billion, flat with the previous quarter’s tally.
The company generated $175.5 million in cash from operating activities and capex was $5.5 million in the quarter. It paid out $85.4 million in dividends in the reported quarter.
Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise
Broadridge expects recurring revenue growth to be 6-9%. Adjusted earnings per share growth is 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).
OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. EPS increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
EFX’s adjusted earnings came in at $1.43, beating the consensus mark by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% year over year.
MAN’s adjusted earnings of $1.61 per share lagged the consensus mark by 0.6% but matched our estimate. Revenues of $4.8 billion missed the consensus mark by 1.3% and our estimate by a slight margin. The top line decreased 7.6% year over year.
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Broadridge's (BR) Q3 Earnings Beat Estimates, Increase Y/Y
Broadridge Financial Solutions, Inc. (BR - Free Report) reported mixed third-quarter fiscal 2023 results with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Adjusted earnings of $2.05 per share beat the consensus mark by 2% and our estimate by 1% and increased 6.2% year over year. Total revenues of $1.65 billion missed the consensus mark and our estimate, both by a slight margin, but were up 7.3% year over year.
Recurring revenues of $1.08 billion increased 8% from the year-ago quarter’s level. The company generated closed sales of $62 million in the quarter, up 8% year over year.
Shares of the company have gained 5.5% over the past year against the 2.4% 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 $1.26 billion. The Global Technology and Operations segment’s revenues came in at $388 million, up 4% from the year-ago quarter’s figure. The improvement was mainly driven by new sales and internal growth.
Operating Results
Adjusted operating income of $345 million increased 10% year over year. Adjusted operating income margin of 21% increased 60 basis points (bps) year over year.
Balance Sheet and Cash Flow
Broadridge exited the quarter with cash and cash equivalents of $331.6 million compared with $280 million at the end of the prior quarter. Long-term debt was $4.1 billion, flat with the previous quarter’s tally.
The company generated $175.5 million in cash from operating activities and capex was $5.5 million in the quarter. It paid out $85.4 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 to be 6-9%. Adjusted earnings per share growth is 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.
Recent Earnings Snapshots of Some Service Providers
Omnicom (OMC - Free Report) reported better-than-expected first-quarter 2023 results.
OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. EPS increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Equifax (EFX - Free Report) also reported better-than-expected first-quarter 2023 results.
EFX’s adjusted earnings came in at $1.43, beating the consensus mark by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% year over year.
ManpowerGroup (MAN - Free Report) reported lower-than-expected first-quarter 2023 results.
MAN’s adjusted earnings of $1.61 per share lagged the consensus mark by 0.6% but matched our estimate. Revenues of $4.8 billion missed the consensus mark by 1.3% and our estimate by a slight margin. The top line decreased 7.6% year over year.