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Valued at a market cap of $26.3 billion, Broadridge Financial Solutions, Inc. (BR) is a financial technology company that offers investor communications and technology-driven solutions to the financial services industry, including banks, broker-dealers, asset managers and corporate issuers. It is expected to announce its fiscal Q3 earnings for 2025 before the market opens on Thursday, May 1.
Prior to this event, analysts project this tech company to report a profit of $2.39 per share, up 7.2% from $2.23 per share in the year-ago quarter. The company has met or surpassed Wall Street’s bottom-line estimates in each of the last four quarters. Its earnings of $1.56 per share in the previous quarter exceeded the consensus estimates by a notable margin of 12.2%.
For the full year, analysts expect BR to report EPS of $8.53, up 10.4% from $7.73 in fiscal 2024. Furthermore, its EPS is expected to grow 9.1% year over year to $9.31 in fiscal 2026.
Shares of BR have soared 21.6% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 9.4% rise, and the Technology Select Sector SPDR Fund’s (XLK) 5.5% gain over the same time frame.
On Jan. 31, BR released its Q2 earnings results. The company delivered better-than-expected adjusted earnings of $1.56 per share and revenue of $1.6 billion, which improved 69.6% and 13.1%, respectively, from the year-ago quarter. Adding to the positives, its recurring revenue rose 9.1% year-over-year to $980.2 million, supported by strong organic growth and the acquisition of SIS. BR also posted record event-driven revenues, driven by a higher volume of mutual fund communications. Additionally, its operating income margin improved to 13.3%, up from 8.9% in the same quarter last year, further strengthening profitability. However, despite these strong results, its shares closed down marginally after the release.
Looking ahead, the company reaffirmed its fiscal 2025 guidance, projecting 6% to 8% adjusted recurring revenue growth, and 8% to 12% adjusted EPS growth.
Wall Street analysts are cautious about BR’s stock, with a "Hold" rating overall. Among seven analysts covering the stock, two recommend "Moderate Buy," and five indicate “Hold.” The mean price target for BR is $244.33, which indicates a 2.8% potential upside from the current levels.
On the date of publication, Neharika Jain 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.
