Broadridge Earns $1.76 per Share

This morning, Broadridge Financial Solutions (BR) released a very good earnings report and the company increased its guidance. The company reported fiscal Q3 earnings of $1.76 per share. That beat Wall Street’s consensus by eight cents per share. Both operating income and recurring revenue grew by 8%.

“Broadridge delivered strong third quarter results, including 8% recurring revenue growth and 8% Adjusted Operating income growth,” said Tim Gokey, Broadridge’s Chief Executive Officer.

“Our results continue to be propelled by powerful long-term trends including increased digitization, mutualization, and the democratization of investing. As a result, we continue to invest in our products and technology platforms. These investments, along with the pending acquisition of Itiviti, will further strengthen our ability to drive increased value to our clients and growth to our shareholders,” Mr. Gokey continued.

The best news is that Broadridge raised its 2021 guidance. Previously the company saw recurring revenue growth coming in the top end of its 3% to 5% range. Now Broadridge sees recurring revenue growth of 8% to 10%.

For total revenue, the company had previously projected the higher end of its 1% to 4% range. Broadridge also sees total revenue growth of 8% to 10%.

On the earnings call, Broadridge said it sees earnings growth for this year of 11% to 13%. The previous guidance was 6% to 10%. Since BR made $5.03 per share last year, the old guidance implied earnings of $5.43 to $5.53 per share for this year. Going by the new range, BR expects earnings of $5.58 to $5.68 per share.

The company has already made $3.47 per share for the first three quarters of this fiscal year, so the new guidance implies fiscal Q4 (June) earnings of $2.11 to $2.21 per share. Wall Street had been expecting $2.13 per share.

Posted by on May 4th, 2021 at 7:22 am


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