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Broadridge (BR) to Report Q3 Earnings: What's in the Offing?

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Broadridge Financial Solutions Inc. (BR - Free Report) is set to report third-quarter fiscal 2019 results on May 7, before the bell. The company’s shares have gained 13.2% over the three months, outperforming the 11% rally of the industry it belongs to.

What to Expect This Time?

The Zacks Consensus Estimate for revenues is pegged at $1.2 billion, indicating an increase of 14.6% from the year-ago quarter’s actual figure.The expected improvement is likely to be driven by strength across both Investor Communication Solutions, and Global Technology and Operations segments.

Broadridge Financial Solutions, Inc. Revenue (TTM)

The consensus estimate for the Investor Communication Solutions segment stands at $1 billion, reflecting year-over-year increase of 17.2%. Processing and distribution of proxy materials and annual reports that comprises a large portion of the Investor Communication Solutions business, takes place in greatest numbers in the third and the fourth fiscal quarters. So, revenues stay considerably up in these quarters. Further, following the adoption of ASU No. 2014-09 in the first quarter of fiscal 2019, majority of revenues from equity proxy services are now recognized in the third and the fourth quarters.

For the Global Technology and Operations segment, the consensus mark stands at $246 million, indicating year-over-year increase of 4.7%. In the fiscal second quarter, its total revenues of $953 decreased 6%, year over year.

The consensus mark for earnings per share is pegged at $1.4, indicating year-over-year increase of 49%. In the fiscal second quarter, adjusted earnings of $1.49 declined 29% on a year-over-year basis.

What Our Model Says

According to the Zacks 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. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially when the company is seeing negative estimate revisions. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Broadridge has an Earnings ESP of +0.34% and a Zacks Rank #3.

Stocks That Warrant a Look

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings this season:

Blucora, Inc. (BCOR - Free Report) , with an Earnings ESP of +5.29% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

FleetCor Technologies, Inc. (FLT - Free Report) , with an Earnings ESP of +0.38% and a Zacks Rank #2.

Envestnet, Inc. (ENV - Free Report) , with an Earnings ESP of +0.56% and a Zacks Rank of 3.

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