Broadridge Financial Solutions Inc. (NYSE:BR) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
Broadridge Financial Solutions Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 32.14% to $0.37 in the quarter versus EPS of $0.28 in the year-earlier quarter.
Revenue: Rose 5.48% to $577 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Broadridge Financial Solutions Inc. reported adjusted EPS income of $0.37 per share. By that measure, the company beat the mean analyst estimate of $0.33. It beat the average revenue estimate of $560.03 million.
Quoting Management: Commenting on the results, Richard J. Daly, Chief Executive Officer, said, “Overall, I am pleased with our third quarter results. For the quarter compared to the same period last year, our total and recurring revenues grew 5%, and our Non-GAAP net earnings from continuing operations and Non-GAAP diluted earnings per share from continuing operations both grew approximately 22%, despite the continuing market challenges. Recurring revenue closed sales were up 50% and we continue to make progress on the large pending sales. We remain confident in our ability to achieve our full year closed sales guidance which will require closing at least one of the large pending transactions. Our sales pipeline remains robust and our client revenue retention rate remains high at approximately 99%.” Mr. Daly concluded, “We believe we are in a great position to complete fiscal year 2013 with strong operating results and the momentum to position us well for fiscal year 2014 and beyond. The solid foundation we’ve built based on a diverse set of leading products and services, a service profit chain culture built on strong values, a trusted brand, and a continued commitment to drive efficiency, is expected to deliver attractive and sustainable total shareholder return over the long-term through revenue growth, expanding margins and strong free cash flows. We remain committed to an effective capital stewardship program to create shareholder value through an attractive dividend payout, strategic tuck-in acquisitions, and opportunistic share repurchases demonstrated by our repurchase of approximately 5% of our diluted outstanding shares in the first nine months of this fiscal year.”
Key Stats (on next page)…
Revenue increased 16.99% from $493.2 million in the previous quarter. EPS increased 117.65% from $0.17 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.09 to a profit $1.1. For the current year, the average estimate has moved down from a profit of $1.8 to a profit of $1.78 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)