Broadridge Q1 revenue beats estimates; maintains FY27 outlook
Overview
US financial technology firm's fiscal Q1 revenue and adjusted EPS beat analyst expectations
Recurring revenue grew 11% yr/yr, driven by 9pts organic growth
Company repurchased $200 mln in shares during the quarter
Outlook
Broadridge reaffirms FY27 recurring revenue growth guidance of 6-8% constant currency
Company expects FY27 adjusted EPS growth of 8-12%
Broadridge maintains FY27 closed sales guidance of $290-$330 mln
Result Drivers
RECURRING REVENUE GROWTH - Co said recurring revenue rose 11% yr/yr, with 9pts from organic growth
SEGMENT PERFORMANCE - Regulatory and capital markets product lines posted 17% recurring revenue growth, while data-driven fund solutions rose 10% and wealth and investment management grew 5%-6%
EVENT-DRIVEN REVENUE DECLINE - Event-driven revenues fell 41% due to lower mutual fund proxy revenues, partially offset by higher equity and other revenue
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $1.67 bln | $1.65 bln (7 Analysts) |
Q1 Adjusted EPS | Beat | $1.56 | $1.37 (8 Analysts) |
Q1 EPS | $0.83 | ||
Q1 Net Income | $94.80 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the professional information services peer group is "buy"
Wall Street's median 12-month price target for Broadridge Financial Solutions Inc is $226.00, about 22.7% above its November 2 closing price of $184.22
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago
Reuters Recommended Reads
Nov 2 - Voya Financial Q3 adjusted EPS beats estimates; boosts dividend, buyback
Nov 3 - Thomson Reuters Q3 revenue, profit miss estimates
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)