Why Is Broadridge Financial Solutions Stock Trading Higher Today?

Broadridge Financial Solutions Inc BR shares are trading higher after it reported fourth-quarter FY24 results.

The company reported revenue growth of 6% Y/Y to $1.94 billion, missing the consensus of $1.96 billion.

Recurring revenues increased 5% to $1.33 billion, and Distribution revenues rose 4% to $542 million. Event-driven segment revenues grew 29% Y/Y to $76 million in the quarter.

Adjusted operating income rose 5% Y/Y to $559 million, with margin contracted to 28.8% from 28.9% a year ago. Adjusted EPS of $3.50 (+9% Y/Y) in line with the consensus.

As of June-end, Broadridge held $304.4 million in cash and equivalents.

FY25 Outlook: Broadridge Financial Solutions expects recurring revenue constant currency growth of 5% – 7% Y/Y and adjusted EPS growth of 8% – 12% Y/Y, representing $8.35 – $8.66 versus the estimate of $8.47.

Tim Gokey, Broadridge CEO, said, “The combination of our strong fiscal year 2024 results and fiscal year 2025 guidance has Broadridge well on-track to deliver again on our three-year financial objectives.”

“We remain committed to a balanced approach to capital allocation. In fiscal year 2024, we repurchased $450 million of our shares and announced three tuck-in acquisitions. I am also pleased to report that our Board has approved a 10% increase in our annual dividend to $3.52, marking the 12th double-digit increase in the past thirteen years.”

Investors can gain exposure to the stock via Motley Fool Mid-Cap Growth ETF TMFM and Bahl & Gaynor Small/Mid Cap Income Growth ETF SMIG.

Price Action: BR shares are up 6.59% at $222.27 at the last check Tuesday.

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