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Broadridge's (BR) Q4 Earnings Match Estimates, Up Y/Y

Broadridge Financial Solutions, Inc.’s BR fourth-quarter fiscal 2022 earnings matched the Zacks Consensus Estimate and revenues beat the same.

Adjusted earnings of $2.65 per share were up 21% year over year. Total revenues of $1.7 billion beat the consensus mark by 2.7% and were up 12.5% year over year.

Recurring fee revenues of $1.2 billion increased 15% from the year-ago quarter’s level. The company generated closed sales of $112 million in the quarter, down 1% year over year.

Shares of the company have lost 9.9% over the past year, against 11.1% growth in the industry it belongs to.

Let’s check out the numbers in detail.

Revenues by Segment

Revenues in the Investor Communication Solutions segment increased 12% from the year-ago quarter’s level to $1.4 billion. Global Technology and Operations segment revenues came in at $382 million, up 18% from the year-ago quarter. The improvement was mainly driven by the Itiviti acquisition, new businesses, and internal growth.

Operating Results

Adjusted operating income of $436 million increased 25% year over year. Adjusted operating income margin of 25.3% increased 250 basis points (bps) year over year.

Balance Sheet and Cash Flow

Broadridge exited the quarter with cash and cash equivalents of $224.7 million compared with $277.2 million at the end of the prior quarter. Long-term debt was $3.9 billion compared with $4.2 billion at the end of the previous quarter.

The company generated $457.4 million of cash from operating activities and capex was $7.1 million in the quarter. Broadridge paid out $74.8 million in dividends in the reported quarter.

Fiscal 2023 Guidance

Broadridge expects recurring revenue growth of 6-9%. Adjusted earnings per share growth is expected to be 7-11%. The adjusted operating income margin is estimated to be up by around 50 bps. Closed sales are anticipated between $270 million and $310 million.

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

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Some Other Business Services Companies

Equifax EFX reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same. 

EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.

IQVIA Holdings IQV reported solid second-quarter 2022 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.

IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.

Omnicom Group OMC reported impressive second-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.

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