Broadridge's Q4 Earnings Surpass Estimates, Rise Y/Y

Broadridge Financial Solutions, Inc. BR reported mixed fourth-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

Adjusted earnings of $3.5 per share beat the Zacks Consensus Estimate by 0.6% and increased 9% from the year-ago quarter. Total revenues of $1.94 billion missed the consensus mark by 1% but were up 6% year over year.

Recurring revenues of $1.3 billion increased 5% year over year on a reported, as well as a constant currency basis.

The company's shares have gained 25.5% over the past year compared with the 5.9% rally of the industry it belongs to and the 15% growth of the Zacks S&P 500 Composite.

Other Key Q4 Metrics

Revenues in the Investor Communication Solutions segment increased 6% from the year-ago quarter's level to $1.53 billion, slightly above our estimate of $1.52 billion. The Global Technology and Operations segment's revenues amounted to $416 million, lagging our estimate of $437.5 million but increasing 4% on a year-over-year basis.

Adjusted operating income of $559 million increased 5% from the year-ago quarter. Adjusted operating income margin of 28.8% decreased slightly year over year.

Broadridge exited the quarter with a cash and cash equivalents balance of $304.4 million compared with $235.6 million at the end of the preceding quarter. Long-term debt was $3.4 billion compared with $3.5 billion at the end of the prior quarter.

The company generated $721 million of cash in operating activities and capex was $17.8 million in the quarter. It paid out $94.3 million in dividends.

Fiscal 2025 Guidance

Broadridge expects recurring revenue growth to be 5-7%. Adjusted earnings per share growth is expected to be 8-12%. Adjusted operating income margin is estimated to be around 20%.

Broadridge currently carries a Zacks Rank #3 (Hold).

Recent Earnings Snapshots

Omnicom OMC reported impressive second-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

OMC's earnings of $1.95 per share beat the consensus estimate by 3.7% and increased 7.7% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and increased 6.8% year over year.

Equifax EFX reported better-than-expected second-quarter 2024 results.

EFX's adjusted earnings were $1.82 per share, beating the consensus estimate by 5.8% and increasing 6.4% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 8.6% from the year-ago quarter.

ManpowerGroup MAN reported mixed second-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

Quarterly adjusted earnings of $1.3 per share surpassed the consensus mark by 2.4% but declined 17.7% year over year. Revenues of $4.5 billion lagged the consensus mark by a slight margin and dipped 6.9% year over year.

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