Broadridge Clocks 10% Revenue Growth In Q3 Backed By Recurring Revenue Strength

Broadridge Financial Solutions, Inc BR reported third-quarter FY22 revenue growth of 10% to $1.534 billion, marginally missing the consensus of $1.54 billion.
Recurring fee revenues increased 16% Y/Y to $1.01 billion. Distribution revenues rose 6% Y/Y to $472 million.
ICS segment total revenues increased 6% Y/Y to $1.16 billion, and GTO recurring fee revenues increased 29% Y/Y to $381.5 million.
The adjusted operating income margin was flat at 20.4%.
Adjusted EPS of $1.93 beat the consensus of $1.78.
Broadridge held $277.2 million in cash and equivalents.
"Broadridge delivered another strong quarter, with 16% recurring revenue and 10% Adjusted EPS growth," said Tim Gokey, CEO. "Our growth is being propelled by long-term trends and by the continued execution of our strategy."
"Broadridge is poised to deliver another year of strong growth. Based on our strong performance to date and visibility into our seasonally larger fourth quarter, we continue to expect fiscal year 2022 recurring revenue growth at the high end of our 12-15% range and are increasing our expectations for Adjusted EPS growth to 13-15%, up from 11-15% previously."
Price Action: BR shares closed lower by 0.60% at $143.26 on Monday.