Broadridge Financial Solutions Earns 56 Cents per Share

Broadridge Financial Solutions (BR) bombed its earnings report. For its fiscal second quarter, BR earned 56 cents per share which is 15 cents less than estimates. Total revenues fell 6% to $953 million.

Management tried to put a happy spin on the results.

“Broadridge had a strong second quarter and is well positioned for the full year 2019 and beyond,” said Tim Gokey, Broadridge’s President and CEO. “We generated strong increases in recurring revenue, record closed sales, and earnings in-line with our expectations, all of which further strengthen our ability to deliver future growth. As anticipated, event-driven revenues declined significantly, returning to more normalized levels from a near-record quarter a year ago.

“We enter our seasonally strong second half with positive momentum and on track to achieve our full-year guidance, including 5-7% recurring fee growth and 9-13% Adjusted EPS growth. Broadridge also remains well positioned to deliver on our three-year growth objectives,” Mr. Gokey added.

Their fiscal 2019 guidance is unchanged. BR sees revenue growth of 3% to 5%, operating margin at 16.5% and EPS growth of 9% to 13%.

For Q3, the company sees revenue between $1.195 billion and $1.245 billion and earnings of $1.40 to $1.56 per share. Wall Street had been expecting $1.53 per share.

Posted by on February 7th, 2019 at 9:06 am


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