Broadridge's Q3 Earnings Beat Estimates, Rise Year Over Year

Broadridge Financial Solutions, Inc. BR reported mixed third-quarter fiscal 2025 results, with earnings beating the Zacks Consensus Estimate but revenues lagging the same.Adjusted earnings of $2.44 per share beat the consensus mark by 2.1% and increased 9.4% from the year-ago quarter. Total revenues of $1.81 billion missed the consensus mark by 2.5% but were up 5% year over year.Recurring revenues of $1.2 billion increased 7% year over year on a reported basis and 8% on a constant currency basis.The company’s stock has gained 26.1% over the past year compared with the 25.8% rally of the industry it belongs to and the 11.5% growth of the Zacks S&P 500 Composite.Other Key Q3 Metrics for BRRevenues in the Investor Communication Solutions segment increased 4% from the year-ago quarter’s level to $1.35 billion, below our estimate of $1.4 billion. The Global Technology and Operations segment’s revenues amounted to $464 million, beating our estimate of $452.3 million but increasing 9% on a year-over-year basis.Broadridge Financial Solutions, Inc. Price, Consensus and EPS Surprise Broadridge Financial Solutions, Inc. price-consensus-eps-surprise-chart | Broadridge Financial Solutions, Inc. QuoteAdjusted operating income of $405.2 million increased 9.7% from the year-ago quarter. Adjusted operating income margin of 22.4% increased 100 basis points year over year.Broadridge exited the quarter with a cash and cash equivalents balance of $317.2 million compared with $292.8 million at the end of the preceding quarter. Long-term debt was $3.4 billion, flat with the prior quarter.The company generated $360.7 million of cash from operating activities, and capex was $11.5 million in the quarter. It paid out $103 million in dividends.BR’s Fiscal 2025 GuidanceThe company expects recurring revenue growth to be 6-8%. 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). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings SnapshotAutomatic Data Processing, Inc. ADP has reported impressive third-quarter fiscal 2025 results. ADP’s earnings per share of $3.06 beat the consensus estimate by 3.4% and increased 6.3% from the year-ago quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Total revenues of $5.6 billion surpassed the consensus estimate by 1.1% and grew 5.7% on a year-over-year basis. The Interpublic Group of Companies, Inc. IPG has reported mixed first-quarter 2025 results. IPG’s adjusted earnings of 33 cents per share surpassed the Zacks Consensus Estimate by 10% but decreased 8.3% from the year-ago quarter.  Revenues before billable expenses (net revenues) of $2 billion missed the consensus estimate by a slight margin and declined 8.3% year over year.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Broadridge Financial Solutions, Inc. (BR): Free Stock Analysis Report Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report Interpublic Group of Companies, Inc. (The) (IPG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks