- Broadridge Financial Solutions Inc BR reported third-quarter FY21 revenue growth of 11% year-on-year to $1.39 billion, beating analyst consensus of $1.28 billion.
- Recurring fee revenues rose 8% to $900 million as growth from onboarding of new business, and internal growth drove the results.
- Event-driven fee revenues grew 89% to $74 million from higher mutual fund proxy activity, contests, and other communications. In comparison, Distribution revenues rose 9% to $449 million from the higher volume of event-driven communications.
- Investor Communication Solutions (ICS) revenue rose 13% to $1.109 billion from higher recurring fee revenue, event-driven revenue, and distribution revenue. Global Technology and Operations (GTO) revenue rose 3% to $314 million from net new business.
- Non-GAAP operating margin contracted 60 basis points to 20.4%.
- Non-GAAP EPS of $1.76 beat the analyst consensus of $1.68.
- The company held $355.8 million in cash and equivalents, and it generated $189.5 million in operating cash flow.
- Guidance: Broadridge raised FY21 recurring revenue growth guidance from the previous range of 3% - 6% to 8% - 10%. The adjusted EPS growth guidance was raised from the previous 6% - 10% to 11% - 13%.
- The results continue to be propelled by increased digitization, mutualization, and the democratization of investing, leading to continuous investment in products and technology platforms, stated CEO Tim Gokey.
- Price action: BR shares closed higher by 0.86% at $159.98 on Monday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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