LONDON, UK / ACCESSWIRE / March 12, 2018 / Active-Investors.com has just released a free earnings report on Broadridge Financial Solutions, Inc. (NYSE: BR) ("Broadridge"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=BR. The Company reported its second quarter fiscal 2018 operating and financial results on February 08, 2018. The technology outsourcing Company outperformed top- and bottom-line expectations, and also raised its revenue and earnings forecasts for the full fiscal year 2018. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Broadridge Financial Solutions most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For the three months ended December 31, 2017, Broadridge's revenues jumped 13% to $1.01 billion from $893 million in Q2 FY17. The Company's revenue numbers topped analysts' estimates of $953.7 million.
During Q2 FY18, Broadridge's recurring fee revenues rose 5% to $562 million on a y-o-y basis, reflecting an organic growth of 4%, including 3% from net new business; 1% from the Company's recent acquisitions; and 1% from internal growth. Broadridge's event-driven fee revenues rose 227% to $97 million on a y-o-y basis, primarily from increased mutual fund proxy activity and equity proxy contests. The Company's distribution revenues increased 7% to $370 million.
For Q2 FY18, Broadridge's operating income soared 96% to $115 million compared to $59 million in Q2 FY17. The Company's operating income margin increased to 11.4% for the reported quarter compared to 6.6% in the prior year's same period. Broadridge's adjusted operating income soared 63% to $137 million in Q2 FY18 compared to $84 million in Q2 FY17, while its adjusted operating income margin increased to 13.6% compared to 9.4% in Q2 FY17. The increases in operating income margin and adjusted operating income margin were primarily attributed to a growth in event-driven fee revenues.
Broadridge's effective tax rate was 40.0% in Q2 FY18 compared to 34.1% in Q2 FY17. During the reported quarter, the Company incurred a net total of $16 million tax expense (tax charge) resulting from the recent changes to US tax laws. The charges were offset by a $16 million benefit from the remeasurement of the Company's net US federal and state deferred tax liabilities.
For Q2 FY18, Broadridge's net earnings came in at $62 million, or $0.52 per diluted share, reflecting growth of 106% and 108%, respectively, compared to $30 million, or $0.25 per diluted share, in Q2 FY17.
Broadridge's adjusted earnings per share (EPS) soared 103% to $0.79 in Q2 FY18 from $0.39 in Q2 FY17. The Company's EPS beat Wall Street's estimates of $0.58.
Segment Results
During Q2 FY18, Broadridge's Investor Communication Solutions (ICS) segment's revenues jumped 14% to $802 million compared to $704 million in Q2 FY17. The segment's recurring fee revenues grew 2% to $334 million on a y-o-y basis. The increase was primarily driven by net new business from increases in revenues from closed sales and revenues from acquisitions. ICS' event-driven fee revenues rocketed 227% to $97 million on a y-o-y basis; the result of increased mutual fund proxy activity and equity proxy contests. The segment's earnings before interest and income taxes (EBIT) were $72 million in Q2 FY18, representing an increase of 255% compared to $20 million in Q2 FY17, primarily due to higher event-driven fee revenues and recurring fee revenues.
For Q2 FY18, Broadridge's Global Technology and Operations (GTO) segment's revenues rose 10% to $228 million compared to $207 million in Q2 FY17. The increase was attributable to higher net new business from closed sales, internal growth from higher trade, and non-trade activity levels and revenue from recent acquisitions. In the reported quarter, GTO's EBIT were $51 million, reflecting an increase of 14% compared to $44 million in Q2 FY17, primarily due to higher organic revenues.
Outlook
Broadridge raised its guidance for total revenues and adjusted earnings growth for the full fiscal year 2018, driven by the strong event-driven revenues generated in the first half of the year, and by the impact of lower tax rates.
For FY18, the Company is forecasting total revenue growth to be in the range of 2% to 4%, and adjusted earnings to be in the band of 27% to 31%, compared to the earlier adjusted earnings growth forecasts of 15% to 19%.
Stock Performance Snapshot
March 09, 2018 - At Friday's closing bell, Broadridge Financial Solutions' stock advanced 1.47%, ending the trading session at $108.35.
Volume traded for the day: 670.54 thousand shares, which was above the 3-month average volume of 571.38 thousand shares.
Stock performance in the last month - up 18.23%; previous three-month period - up 22.22%; past twelve-month period - up 57.90%; and year-to-date - up 19.62%
After last Friday's close, Broadridge Financial Solutions' market cap was at $12.63 billion.
Price to Earnings (P/E) ratio was at 33.20.
The stock has a dividend yield of 1.35%.
The stock is part of the Technology sector, categorized under the Information & Delivery Services industry. This sector was up 1.7% at the end of the session.
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