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Will Tax Cut Aid Broadridge Financial (BR) in Q4 Earnings?

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Broadridge Financial Solutions, Inc. (BR - Free Report) is scheduled to report fourth-quarter fiscal 2018 earnings on Aug 7, before the opening bell. The company’s shares have returned 50% over the past year compared with the industry’s rise of 17.4%.

 

Here are the expectations.

Revenues

The Zacks Consensus Estimate for revenues is pegged at $1.33 billion, indicating a decline of 1.41% on a year-over-year basis. The downside is likely to be caused by a significant fall in event-driven revenues. The company expects event-driven revenues to decline 30-40% in the upcoming quarterly release.

Tax Cuts to Aid Earnings

The consensus estimate for earnings per share is pegged at $1.88, indicating year-over-year growth of 9.9%. Strong operations and the 2017 tax reform policy (Tax Cuts and Jobs Act) are likely to boost the company’s bottom line. However, increased investments in digital, AI, cloud and blockchain are likely to offset bottom-line growth.

What Does Our Predictive Model Say

According to our model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. However, that is not the case as highlighted below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP : Broadridge has an Earnings ESP of +0.44% as the Most Accurate Estimate is at $1.89 per share, while the Zacks Consensus Estimate is pegged at $1.88.

Zacks Rank : However, Broadridge carries a Zacks Rank #4 (Sell), which lowers the predictive power of ESP.

Stocks That Warrant a Look

Investors interested in the broader Business Services Sector may check out the following companies with the right combination elements to beat estimates in the next release.

JetPay Corporation has an Earnings ESP of +14.29% and a Zacks Rank #3. The company will release second-quarter 2018 results on Aug 10. You can see the complete list of today’s Zacks #1 Rank stocks here.

EVO Payments, Inc (EVOP - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank #3. The company will release second-quarter 2018 results on Aug 8.

GreenSky, Inc (GSKY - Free Report) has an Earnings ESP of +1.27% and a Zacks Rank #3. The company will release second-quarter 2018 results on Aug 7.

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Broadridge Financial Solutions, Inc. (BR) - free report >>

GreenSky, Inc. (GSKY) - free report >>

EVO Payments, Inc. (EVOP) - free report >>

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