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Broadridge (BR) to Report Q1 Earnings: What's in the Cards?

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Broadridge Financial Solutions Inc. (BR - Free Report) is set to report first-quarter fiscal 2017 results on Nov 9. Last quarter, the company posted earnings of $1.45 per share, which was in line with the Zacks Consensus Estimate. Notably, Broadridge has surpassed the Zacks Consensus Estimate thrice while matching the same once in the preceding four quarters. It has an average positive surprise of 13.94%.

Let’s see how things are shaping up for this announcement.

Factors to Consider

Broadridge is a leading global provider of technology-based outsourcing solutions to the financial services industry. We believe Broadridge’s strategic initiatives such as acquisitions and product launch will continue to drive its top- and bottom-line results. Moreover, the company’s close business relations with Accenture Plc (ACN - Free Report) will positively impact its revenues and earnings in the to-be-reported quarter.

Furthermore, strength in the company’s products and services, led by the Investor Communications business, allows it to brave the ongoing economic challenges. We believe that these positives, combined with new product initiatives, will enable the company to counter macro headwinds to a large extent. They will also provide Broadridge an opportunity to grow further as and when the financial services market improves.

However, competition and pricing pressure remain major concerns.

Earnings Whispers

Our proven model does not conclusively show that Broadridge is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.

Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 38 cents per share. Hence, the difference is 0.00%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

Zacks Rank: Broadridge currently has a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.

BROADRIDGE FINL Price and EPS Surprise


Stocks to Consider

Here are a couple of stocks, which you may consider as our model shows that they have the right combination of elements to post an earnings beat in their upcoming releases:

Asure Software Inc. (ASUR - Free Report) , with an Earnings ESP of +14.29% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

TubeMogul, Inc. , with an Earnings ESP of +8.00% and a Zacks Rank #3.

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