How Was Broadridge Financial Solutions' Q4 Earnings?

Broadridge Financial Solutions Inc BR reported fourth-quarter FY21 revenue growth of 12% to $1.53 billion, beating the analyst consensus of $1.47 billion. Recurring fee revenues increased 15% Y/Y to $1.07 billion.
ICS revenues increased 12% Y/Y to $1.22 billion, with the Recurring fee revenues rising 17% Y/Y to $719 million.
ICS Distribution revenues increased 5% Y/Y to $429 million, driven by increased customer communications volume. ICS pre-tax margin expanded ten bps to 23.9% from higher Recurring fee revenues and Event-driven fee revenues.
GTO recurring fee revenues increased 10% Y/Y to $346 million, and the segment's pre-tax margin contracted 1,400 bps to 9% due to higher acquisition-related amortization, other costs, and growth initiative spending.
Overall adjusted operating margin contracted 180 bps to 22.8% due to higher spend on growth initiatives.
Adjusted EPS of $2.19 was at par with the analyst consensus.
Broadridge held $274.5 million in cash and equivalents and generated $640.1 million in operating cash flow during FY21.
Broadridge raised the annual dividend by 11% to $2.56.
Outlook: Broadridge sees FY22 recurring revenue growth between 12%-15% and sees an adjusted operating margin of 19%.
It expects adjusted EPS growth of 11%-15% above the analyst consensus of $6.26.
Price Action: BR shares closed higher by 0.45% at $172.90 on the last check Thursday.

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