Financial technology provider Broadridge (NYSE: BR) will be reporting results this Tuesday morning. Here’s what investors should know.
Broadridge missed analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $1.81 billion, up 4.9% year on year. It was a slower quarter for the company, with a narrow beat of analysts’ EPS estimates.
Is Broadridge a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Broadridge’s revenue to grow 5.7% year on year to $2.06 billion, in line with the 5.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.50 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Broadridge has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Broadridge’s peers in the data & business process services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. EXL delivered year-on-year revenue growth of 14.7%, beating analysts’ expectations by 1.6%, and SS&C reported revenues up 5.9%, topping estimates by 1.5%. EXL traded up 1.4% following the results while SS&C was also up 2.6%.
Read our full analysis of EXL’s results here and SS&C’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the data & business process services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.4% on average over the last month. Broadridge is up 1.7% during the same time and is heading into earnings with an average analyst price target of $253.11 (compared to the current share price of $244.65).
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