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Broadridge Q2 Earnings & Revenues Surpass Estimates, Rise Y/Y

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Broadridge Financial Solutions, Inc. (BR - Free Report) has reported impressive second-quarter fiscal 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

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BR’s adjusted earnings of $1.6 per share outpaced the consensus mark by 12.2% and increased 69.6% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus mark by 3% and rose 12.8% year over year.

The company’s stock has gained 20.5% over the past year compared with the 27.8% rally of the industry it belongs to and 27% growth of the Zacks S&P 500 Composite.

Broadridge’s Key Q2 Metrics

Revenues in the Investor Communication Solutions (ICS) segment increased 15% from the year-ago quarter to $1.1 billion, meeting our estimate. The Global Technology and Operations (GTO) segment’s revenues amounted to $440 million, lagging our estimate of $441.3 million but increasing 9% on a year-over-year basis.

Adjusted operating income of $263 million rose 51% from the year-ago quarter. Adjusted operating income margin of 16.6% gained 420 basis points year over year.

Broadridge exited the quarter with a cash and cash equivalents balance of $289.9 million compared with $292.8 million at the end of the preceding quarter. Long-term debt was $3.7 billion compared with $3.6 billion at the end of the prior quarter.

The company generated $236.7 million of cash in operating activities. Capex was $ 8.8 million in the quarter. The company paid out $102.8 million in dividends.

BR’s FY25 Guidance

Broadridge expects recurring revenue growth of 6-8%. Adjusted earnings per share growth is expected to be 8-12%. The adjusted operating income margin is estimated to be 20%.

Broadridge currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots

Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2025 results.

ADP’s earnings per share of $2.4 beat the consensus estimate by 3.5% and increased 10.3% from the year-ago quarter. Total revenues of $5.1 billion surpassed the consensus estimate by 1.6% and grew 8.1% on a year-over-year basis.

Accenture plc (ACN - Free Report) posted better-than-expected first-quarter fiscal 2025 results.

ACN’s earnings (excluding 13 cents from non-recurring items) of $3.6 per share outpaced the Zacks Consensus Estimate by 6.2% and increased 28.7% from the year-ago quarter. Total revenues of $17.7 billion beat the consensus estimate by 3.1% and gained 9.1% on a year-over-year basis.


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