Broadridge Financial Solutions Reports First Quarter Fiscal Year 2025 Financial Results
Broadridge Financial Solutions, Inc. (NYSE: BR) has announced its financial results for the first quarter ended September 30, 2024, marking an essential period within its fiscal year 2025.
Key Financial Metrics
| Metric | Q1 FY2025 | Q1 FY2024 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $1.423B | $1.431B | -1% | $1.48B |
| Diluted EPS | $0.68 | $0.76 | -11% | $0.97 |
| Adjusted EPS | $1.00 | $1.09 | -8% | N/A |
In summary, Broadridge's financial performance for the first quarter showed a slight decline in total revenue and earnings. Total revenue decreased by 1% year-over-year, falling short of the consensus estimate of $1.48 billion. The diluted earnings per share also decreased by 11% to $0.68, underperforming the consensus estimate of $0.97. However, the company demonstrated resilience with adjusted EPS at $1.00, highlighting operating efficiency despite challenging conditions impacting revenue.
Revenue Performance by Segment
| Segment | Q1 FY2025 Revenue | Q1 FY2024 Revenue | YoY Change |
|---|---|---|---|
| Investor Communication Solutions | $1,016M | $1,029M | -1% |
| Global Technology and Operations | $407M | $402M | +1% |
The Investor Communication Solutions (ICS) segment saw a slight decline in total revenue by 1%, primarily due to lower event-driven revenues. Recurring revenues within ICS, however, exhibited growth, driven by net new business in the regulatory and issuer product lines. The Global Technology and Operations (GTO) segment experienced a 1% increase in recurring revenues, credited to internal growth impacting capital markets product lines positively.
Key Developments and Operational Highlights
- Recurring Revenues increased by 3% to $900 million, driven by net new business.
- Closed Sales surged by 21% to $57 million, reflecting strong market demand.
- The effective tax rate rose slightly to 20.4% due to changes in discrete tax benefits.
- Acquisition of SIS : Broadridge completed the acquisition of Kyndryl's Securities Industry Services, enhancing offerings in Canada.
Executive Commentary
CEO Tim Gokey remarked, 'Broadridge's first quarter results keep us on track for a robust fiscal year 2025,” highlighting the strength in adjusted EPS and recurring revenue. The focus remains on executing strategies to modernize wealth management and digitize investing.
Forward Guidance
Broadridge has raised its fiscal year 2025 guidance for recurring revenue growth to 6-8%, reflecting robust organic growth and acknowledging the contributions from the SIS acquisition. The company reaffirmed its adjusted EPS growth expectation of 8-12%.
Stock Price Movement
Following the earnings release, Broadridge's stock experienced a minor decline of 0.27%.
Overall, Broadridge remains optimistic about achieving its growth objectives for FY2025, with a particular emphasis on advancing its comprehensive technology solutions and strategic acquisitions.
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