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Broadridge (BR) Q2 Earnings Meet Estimates, Rise Y/Y

Broadridge Financial Solutions, Inc.’s BR second-quarter fiscal 2023 earnings matched the Zacks Consensus Estimate but revenues missed the same.

Adjusted earnings of 91 cents per share were up 9.6% year over year. Total revenues of $1.3 billion missed the consensus mark by 3.5% but were up 2.6% year over year.

Recurring revenues of $840 million increased 6% from the year-ago quarter. The company generated closed sales of $65 million in the quarter, down 20% year over year.

Shares of the company have gained 5.1% over the past year compared with the 5.2% rise of the industry it belongs to.

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Let’s check out the numbers in detail.

Revenues by Segment

Revenues in the Investor Communication Solutions segment increased 3% from the year-ago quarter to $919 million. Global Technology and Operations segment’s revenues were $373 million, up 2% from the year-ago quarter. The improvement was mainly driven by new sales and internal growth.

Operating Results

Adjusted operating income of $173 million increased 23% year over year. Adjusted operating income margin of 11.2% decreased 220 basis points (bps) year over year.

Balance Sheet and Cash Flow

Broadridge exited the quarter with cash and cash equivalents of $280 million compared with $227.1 million at the end of the prior quarter. Long-term debt was $4.1 billion, flat with the previous quarter.

The company generated $123.1 million in cash from operating activities and capex was $10.4 million in the quarter. Broadridge paid out $85.3 million in dividends in the reported quarter.

Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise

 

Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise
Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise

Broadridge Financial Solutions, Inc. price-consensus-eps-surprise-chart | Broadridge Financial Solutions, Inc. Quote

Fiscal 2023 Guidance

Broadridge expects recurring revenue growth of 6-9%. Adjusted earnings per share growth is expected to be 7-11%. Adjusted operating income margin is estimated to be up by 50 bps. Closed sales are anticipated between $270 million and $310 million.

Broadridge currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Performance of Some Other Business Services Companies

Robert Half International Inc. RHI reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.

RHI’s quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.

Automatic Data Processing, Inc. ADP reported better-than-expected second-quarter fiscal 2023 results.

ADP’s adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago quarter. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago quarter.

Booz Allen Hamilton Holding Corp. BAH reported impressive third-quarter fiscal 2023 results, with both earnings and revenues beating the Zacks Consensus Estimate. Quarterly adjusted earnings per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.

BAH’s total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.

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Broadridge Financial Solutions, Inc. (BR) : Free Stock Analysis Report

Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report

Robert Half International Inc. (RHI) : Free Stock Analysis Report

Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report

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