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Broadridge (BR) Q3 Earnings Meet Estimates, Revenues Miss
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Broadridge Financial Solutions, Inc.’s (BR - Free Report) third-quarter fiscal 2024 earnings met the Zacks Consensus Estimate, while revenues missed the same.
BR’s adjusted earnings (adjusting 44 cents from non-recurring items) of $2.2 per share increased 8.8% from the year-ago quarter. Total revenues of $1.7 billion missed the consensus mark by 1.8% and were up 4.9% year over year.
Recurring revenues of $1.1 billion increased 4% year over year on a reported and constant-currency basis.
The stock of the company has gained 32% over the past year compared with the 16.1% rally of the industry it belongs to and 26% growth of the Zacks S&P 500 Composite.
Broadridge Financial Solutions, Inc. Price and EPS Surprise
Revenues in the Investor Communication Solutions segment increased 3.5% from the year-ago quarter to $1.3 billion, meeting our estimate. The Global Technology and Operations segment’s revenues amounted to $425.1 million, surpassing our estimate of $418.8 million and increasing 9.4% on a year-over-year basis.
Operating Results
Adjusted operating income of $370 million increased 7% from the year-ago quarter. This figure missed our anticipated $377.4 million. The adjusted operating margin of 21.4% increased 40 basis points from third-quarter fiscal 2023. This compares with our expectation of an adjusted operating income margin of 21.6%.
Balance Sheet & Cash Flow
Broadridge exited the quarter with cash and cash equivalents of $235.6 million compared with $277 million at the end of the preceding quarter. The long-term debt was $3.5 billion compared with $3.7 billion at the end of the second quarter of fiscal 2024.
The company generated $207.4 million of cash in operating activities and capex was $22.8 million in the quarter. It paid out $273.9 million in dividends.
FY24 Guidance
For 2024, Broadridge expects recurring revenue growth of 6-9%. Adjusted earnings per share growth is expected to be 8-12%. The adjusted operating margin is estimated to be around 20%.
WM’s adjusted earnings per share of $1.8 surpassed the Zacks Consensus Estimate by 15.1% and improved 33.6% year over year. Total revenues of $5.2 billion missed the consensus estimate by a slight margin but increased 5.5% year over year.
Waste Connections’ adjusted earnings (excluding 15 cents from non-recurring items) of $1 per share beat the Zacks Consensus Estimate by 2% and increased 16.9% year over year. Revenues of $2.1 billion surpassed the consensus estimate by 1% and rose 9.1% from the year-ago quarter.
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Broadridge (BR) Q3 Earnings Meet Estimates, Revenues Miss
Broadridge Financial Solutions, Inc.’s (BR - Free Report) third-quarter fiscal 2024 earnings met the Zacks Consensus Estimate, while revenues missed the same.
BR’s adjusted earnings (adjusting 44 cents from non-recurring items) of $2.2 per share increased 8.8% from the year-ago quarter. Total revenues of $1.7 billion missed the consensus mark by 1.8% and were up 4.9% year over year.
Recurring revenues of $1.1 billion increased 4% year over year on a reported and constant-currency basis.
The stock of the company has gained 32% over the past year compared with the 16.1% rally of the industry it belongs to and 26% growth of the Zacks S&P 500 Composite.
Broadridge Financial Solutions, Inc. Price and EPS Surprise
Broadridge Financial Solutions, Inc. price-eps-surprise | Broadridge Financial Solutions, Inc. Quote
Revenues by Segment
Revenues in the Investor Communication Solutions segment increased 3.5% from the year-ago quarter to $1.3 billion, meeting our estimate. The Global Technology and Operations segment’s revenues amounted to $425.1 million, surpassing our estimate of $418.8 million and increasing 9.4% on a year-over-year basis.
Operating Results
Adjusted operating income of $370 million increased 7% from the year-ago quarter. This figure missed our anticipated $377.4 million. The adjusted operating margin of 21.4% increased 40 basis points from third-quarter fiscal 2023. This compares with our expectation of an adjusted operating income margin of 21.6%.
Balance Sheet & Cash Flow
Broadridge exited the quarter with cash and cash equivalents of $235.6 million compared with $277 million at the end of the preceding quarter. The long-term debt was $3.5 billion compared with $3.7 billion at the end of the second quarter of fiscal 2024.
The company generated $207.4 million of cash in operating activities and capex was $22.8 million in the quarter. It paid out $273.9 million in dividends.
FY24 Guidance
For 2024, Broadridge expects recurring revenue growth of 6-9%. Adjusted earnings per share growth is expected to be 8-12%. The adjusted operating margin is estimated to be around 20%.
Broadridge currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshots
Waste Management Inc. (WM - Free Report) reported mixed first-quarter 2024 results.
WM’s adjusted earnings per share of $1.8 surpassed the Zacks Consensus Estimate by 15.1% and improved 33.6% year over year. Total revenues of $5.2 billion missed the consensus estimate by a slight margin but increased 5.5% year over year.
Waste Connections, Inc. (WCN - Free Report) reported solid first-quarter 2024 results.
Waste Connections’ adjusted earnings (excluding 15 cents from non-recurring items) of $1 per share beat the Zacks Consensus Estimate by 2% and increased 16.9% year over year. Revenues of $2.1 billion surpassed the consensus estimate by 1% and rose 9.1% from the year-ago quarter.