Broadridge Financial Solutions Earnings: Net Income Falls Again

Broadridge Financial Solutions Inc. (NYSE:BR) reported its results for the third quarter. Broadridge Financial Solutions is a global provider of investor communication, securities processing, and clearing and outsourcing solutions to the financial services industry.

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Broadridge Financial Solutions Earnings Cheat Sheet for the Third Quarter

Results: Net income for Broadridge Financial Solutions Inc. fell to $16.7 million (13 cents per share) vs. $29.7 million (23 cents per share) a year earlier. This is a decline of 43.8% from the year-earlier quarter.

Revenue: Rose 3.8% to $547 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Broadridge Financial Solutions Inc. reported adjusted net income of 28 cents per share. By that measure, the company beat the mean estimate of 27 cents per share. It fell short of the average revenue estimate of $563.8 million.

Quoting Management: Commenting on the results, Richard J. Daly, Chief Executive Officer, said, “Overall, I am satisfied with our third quarter results. Our recurring revenues grew 9% and we had excellent client revenue retention of 99%; however, as anticipated, event-driven revenues continue to remain weak. We believe we are well positioned to finish fiscal year 2012 with strong operating results which should enable us to achieve our full year Non-GAAP earnings per share guidance.”

Key Stats:

Revenue has risen for the last four quarters. Revenue increased 8.6% to $479.8 million in the second quarter. The figure rose 13.2% in the first quarter from the year earlier and climbed 3.3% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company’s net income has fallen in each of the last two quarters. In the second quarter, net income fell 34.6% from the year-earlier quarter.

The company beat estimates last quarter after meeting expectations in the second quarter with net income of 12 cents per share.

Looking Forward: Expectations for the fourth quarter have not changed from $1.02. For the fiscal year, the average estimate has moved down from $1.59 a share to $1.56 over the last sixty days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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