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

Adjusted earnings of $3.21 per share beat the consensus mark by 3.6% and increased 21.1% year over year. Total revenues of $1.83 billion missed the consensus mark by 2.5% but were up 6.7% year over year.

Recurring revenues of $1.26 billion increased 7% from the year-ago quarter’s level. The company generated closed sales of $90 million in the quarter, down 19% year over year.

Shares of the company have gained 4.9% over the past year against the 1.7% 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 6% from the year-ago quarter’s level to $1.44 billion and beat our estimate of $1.38 billion. The Global Technology and Operations segment’s revenues came in at $401 million, lagging our estimate of $495.5 million but increasing 8% from the year-ago quarter’s figure. The improvement was mainly driven by net new business and internal growth.

Operating Results

Adjusted operating income of $531.2 million increased 21.9% year over year. This compares favorably with our expectation of an adjusted operating income of $500.4 million, up 14.9% year over year.

Adjusted operating income margin of 28.9% increased 360 basis points (bps) year over year. This compares with our expectation of an adjusted operating income margin of 26.6%, up 130 bps year over year.

Balance Sheet and Cash Flow

Broadridge exited the quarter with cash and cash equivalents of $252.3 million compared with $331.6 million at the end of the prior quarter. Long-term debt was $2.3 billion compared with the prior quarter’s $4.1 billion.

The company generated $729.2 million in cash from operating activities and capex was $17 million in the quarter. It paid out $85.3 million in dividends in the reported quarter.

Fiscal 2024 Guidance

Broadridge expects recurring revenue growth to be 6-9%. Adjusted earnings per share growth is expected to be 8-12%. Adjusted operating income margin is estimated to be around 20%. Closed sales are anticipated between $280 million and $320 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 Quick QuoteOMC - Free Report) reported mixed second-quarter 2023 results, wherein the company’s earnings surpassed the Zacks Consensus Estimate but revenues missed the same.

OMC’s earnings of $1.81 per share beat the consensus estimate by 0.6% and increased 7.7% year over year. Total revenues of $3.6 billion lagged the consensus estimate by 0.3% but increased 1.2% year over year.

Equifax (EFX Quick QuoteEFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.

EFX’s adjusted earnings came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% but matched the year-ago figure on a reported basis.

Interpublic’s (IPG Quick QuoteIPG - Free Report) second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same.

IPG’s adjusted earnings came in at 74 cents per share, beating the Zacks Consensus Estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.