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Broadridge Gears Up for Q2 Earnings: What Lies Ahead for the Stock?

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Broadridge Financial Solutions Inc. (BR - Free Report) is set to report its second-quarter fiscal 2025 results on Jan. 31, before market open.

See Zacks Earnings Calendar to stay ahead of market-making news.

The company’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and met twice, delivering an average surprise of 1.3%.

Broadridge’s Q2 Expectations

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.5 billion, which indicates a 9.8% rise from the year-ago quarter’s reported figure. Growth across segments is likely to have aided top-line growth.

Our estimate for net revenues at Investor Communication Solutions is pegged at $1.1 billion, which suggests a year-over-year rise of 7.8%. This segment’s revenues are anticipated to have been driven by growth in fund solutions, Retirement and Workplace solutions, and analytics products. Growth in shareholder engagement solutions is expected to have benefited this segment.

We expect net revenues in the Global Technology and Operations segment to be $441.3 million, which hints at an 8.9% year-over-year increase. Growth in global trade capabilities, which benefited from higher fixed-income trading volumes and BDCs front office solutions, is anticipated to have driven Capital Markets’ revenues, contributing to the segments’ revenues.

The consensus mark for earnings in the to-be-reported quarter is pegged at $1.4 per share, which suggests a year-over-year increase of 51.1%. Higher revenues are expected to have benefited the bottom line.

What Our Model Predicts About BR

Our model predicts an earnings beat for Broadridge this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Broadridge has an Earnings ESP of +7.72% and a Zacks Rank of 3 at present.

Stocks That Warrant a Look

Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.

FIS (FIS - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter 2024 revenues is pegged at $2.6 billion, indicating 4.9% year-over-year growth. The consensus mark for earnings stands at $1.4, suggesting 43.6% growth from the year-ago reported quarter. Earnings have surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average earnings surprise of 8.2%.

FIS has an Earnings ESP of +0.41% and a Zacks Rank of 2 at present. The company is scheduled to post its fourth-quarter results on Feb. 11. You can see the complete list of today’s Zacks #1 Rank stocks here.

S&P Global (SPGI - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter 2024 revenues is pegged at $3.5 million, indicating a year-over-year increase of 10.2%. For earnings, the consensus mark is pegged at $3.4 per share, suggesting 8.6% growth from that reported in the year-ago quarter. The company beat the Zacks Consensus Estimate in three of the past four quarters and missed once, with an average surprise of 6.3%.

SPGI has an Earnings ESP of +0.94% and a Zacks Rank #2 at present. The company is scheduled to declare its fourth-quarter results on Feb. 11.

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