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New York-based Broadridge Financial Solutions, Inc. (BR) is a global financial technology company providing investor communications and technology solutions to banks, broker-dealers, asset managers, and corporate issuers. With a market cap of $24.9 billion, the company operates in two segments: Investor Communication Solutions and Global Technology and Operations. Broadridge Financial is scheduled to release its fiscal 2024 Q4 earnings results before the market opens on Tuesday, Aug. 6.
Ahead of the event, analysts expect Broadridge Financial to report a profit of $3.48 per share, up 8.4% from $3.21 per share in the year-ago quarter. The company has exceeded or met Wall Street’s EPS estimates in each of the last four quarters. Broadridge Financial’s EPS of $2.23 for the last reported quarter was in line with the consensus estimate.
Analysts expect Broadridge Financial to report an EPS of $7.72 in fiscal 2024, up 10.1% from $7.01 in fiscal year 2023. Over the longer term, its fiscal 2025 EPS is projected to rise 8.7% annually to $8.39.
Over the past 52 weeks, BR stock has soared 28.4%, surpassing the broader S&P 500 Index's ($SPX) 18.6% gains and the Technology Select Sector SPDR Fund’s (XLK) 18% returns during the same period.
On May 8, Broadridge announced its Q3 earnings report, causing its stock to dip 5.4% due to missing revenue estimates, even though revenue rose 5% annually to $1.7 billion.
Despite this, Broadridge reported a 29% year over year increase in closed sales and a 4% rise in recurring revenues compared to last year’s quarter, demonstrating strong market demand and effective execution. The company remains on track for 100% free cash flow conversion for the fiscal year, supporting strategic investments and shareholder returns.
Broadridge is positioned for continued growth, with its fiscal year 2024 outlook projecting an 8% to 12% increase in adjusted EPS. Additionally, the company is pursuing strategic M&A opportunities to complement organic growth and enhance long-term value.
The current consensus opinion on Broadridge Financial stock is “Moderate Buy” overall. Out of seven analysts covering the stock, one suggests a “Strong Buy,” two give a “Moderate Buy,” and the remaining four advise a “Hold.”
While BR currently trades above its average price target of $211.50, its Street high price target of $239 represents a potential upside of 11% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
