Broadridge Financial Solutions Fourth Quarter Earnings Sneak Peek

Broadridge Financial Solutions, Inc. (NASDAQ:BR) will unveil its latest earnings on Thursday, August 11, 2011. Broadridge Financial Solutions Inc. is a global provider of investor communication, securities processing, and clearing and outsourcing solutions to the financial services industry.

Broadridge Financial Solutions, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 91 cents per share, a rise of 8.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 97 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 91 cents during the last month. For the year, analysts are projecting profit of $1.36 per share, a decline of 16% from last year.

Past Earnings Performance: The company beat estimates last quarter after falling short in the prior two. In the third quarter, the company reported net income of 25 cents per share versus a mean estimate of profit of 19 cents per share. In the second quarter, the company missed estimates by 6 cents.

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Wall St. Revenue Expectations: On average, analysts predict $771 million in revenue this quarter, a rise of 2.7% from the year ago quarter. Analysts are forecasting total revenue of $2.16 billion for the year, a decline of 2.3% from last year’s revenue of $2.21 billion.

Analyst Ratings: Analysts are bullish on Broadridge Financial Solutions as two analysts rate it as a buy, none rate it as a sell and two rate it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

Key Stats:

The increase in profit in the third quarter breaks a streak of three consecutive quarters of year-over-year profit decreases. In the third quarter, net income rose 19.3% from the year earlier, while the figure dropped 69% in the second quarter, 49.6% in the first quarter and 10.1% in the fourth quarter of the last fiscal year.

A year-over-year revenue increase in the third quarter snaps a streak of two consecutive quarters of revenue declines. Revenue rose 7.4% in the third quarter and fell 16.4% in the second quarter and 7.8% in the first quarter.

Competitors to Watch: ExlService Holdings, Inc. (NASDAQ:EXLS), Thomson Reuters Corp. (NYSE:TRI), DST Systems, Inc. (NYSE:DST), CoreLogic Inc. (NYSE:CLGX), WNS (Holdings) Ltd. (NYSE:WNS), Morgan Stanley (NYSE:MS), Stream Global Services, Inc. (AMEX:SGS), Sykes Enterprises, Inc. (NASDAQ:SYKE), and Innotrac Corporation (NASDAQ:INOC).

Stock Price Performance: During July 8, 2011 to August 5, 2011, the stock price had dropped $3.04 (-12.4%) from $24.49 to $21.45. The stock price saw one of its best stretches over the last year between June 15, 2011 and June 24, 2011 when shares rose for eight-straight days, rising 6.6% (+$1.46) over that span. It saw one of its worst periods between October 5, 2010 and October 15, 2010 when shares fell for nine-straight days, falling 9.4% (-$2.11) over that span. Shares are down 18 cents (-0.8%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock >>