Loading...
01/10 16:12
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary shows strong financial performance with record closed sales, a 10% dividend increase, and positive revenue growth guidance. Despite some concerns about acquisition risks and market volatility, analysts' questions reveal confidence in revenue growth and sales pipeline. The new SIS acquisition is expected to be neutral to EPS initially but contributes to revenue. While operating margins declined slightly, the overall sentiment remains positive due to strong sales, digital strategy, and shareholder returns. Given the lack of market cap information, the prediction leans towards a positive stock price movement.
Recurring Revenue $900 million, up 4% year-over-year (constant currency), driven by governance and capital markets franchises, partially offset by the E-Trade deconversion.
Adjusted EPS $1 per share, reflecting a decrease due to lower event-driven revenues and the impact of the E-Trade deconversion.
Closed Sales $57 million, up 21% year-over-year, driven by strong demand for governance solutions and class action services.
Adjusted Operating Income Margin 13%, down 90 basis points year-over-year, driven by lower event-driven revenues and the E-Trade deconversion.
Cash Flow (Free Cash Flow) Negative $158 million, a decrease from negative $76 million year-over-year, driven by increased cash taxes and severance payments.
Total Revenue $1.4 billion, flat year-over-year, as growth from recurring revenue was offset by declines in event-driven revenue and distribution revenue.
Event Driven Revenues $63 million, down $27 million from an unusually high Q1 ‘24, in line with the 7-year quarterly average.
Distribution Revenue Declined 3%, representing a 1 point headwind to total revenue growth, impacted by higher postal rates and lower mail volumes.
Equity Position Growth 3%, impacted by the mix of companies hosting annual meetings, with expectations for mid to high single-digit growth in the first half of the year.
Mutual Fund and ETF Position Growth 6%, with expectations for continued mid-single-digit growth.
Trade Volumes Rose 10% on a blended basis, led by double-digit growth in fixed income volume.
ICS Recurring Revenues $493 million, up 5%, driven by strong revenue from sales and growth in investor participation.
GTO Revenues $407 million, up 2%, with capital markets revenues growing 5% and wealth and investment management revenues declining 4%.
Wealth and Investment Management Revenue Declined 4% due to the E-Trade deconversion, but underlying growth was 6%.
SIS Acquisition Impact Expected to contribute over 1 percentage point to Broadridge's growth, with slight dilution to margins but no material impact on earnings.
New Governance Client Experience: Introduced a new governance client experience providing broker clients with a single dashboard to monitor critical communications.
Shareholder Reporting Solution: Onboarded hundreds of fund clients onto a new tailored shareholder reporting solution.
Tradeverse Solution: Launched a new Tradeverse solution to harmonize multi-asset class trade data throughout the trade lifecycle.
Acquisition of SIS: Closed the acquisition of SIS for approximately $185 million to expand the Canadian business and accelerate wealth innovation.
Closed Sales: Achieved a record $57 million in closed sales for the first quarter.
Recurring Revenue Growth: Recurring revenue grew 4% in constant currency, driven by governance and capital markets franchises.
Operational Efficiency: Continued focus on driving innovation and enabling clients to adapt to regulatory changes.
Guidance Update: Raised fiscal 2025 recurring revenue guidance to 6% to 8% due to the SIS acquisition and strong organic growth.
Long-term Financial Objectives: On-track to achieve three-year financial objectives laid out at the last Investor Day.
Regulatory Change: The company faces ongoing regulatory changes that require adaptation and innovation in their services, which can create uncertainty and operational challenges.
Geopolitical Uncertainty: High levels of uncertainty due to the U.S. Election and other geopolitical events may impact market conditions and client behavior.
E-Trade Deconversion Impact: The deconversion of E-Trade has negatively affected recurring revenue growth, with expectations for this impact to subside in the upcoming quarters.
Supply Chain Challenges: The company is navigating supply chain challenges, particularly in the context of increased costs associated with T+1 implementation in Europe.
Economic Factors: The interplay of growth and inflation in the markets has created volatility, affecting trading volumes and operational efficiency.
Acquisition Integration: The recent acquisition of SIS may be slightly dilutive to margins in the short term, posing integration challenges.
Market Competition: Competitive pressures in the financial services sector may impact pricing and market share.
Cash Flow Generation: The company typically experiences negative cash flow in the first quarter, which may affect liquidity and operational flexibility.
Acquisition of SIS: Broadridge closed the acquisition of SIS for approximately $185 million, which is expected to grow their Canadian business and enhance wealth innovation.
Product Innovation: Broadridge is focused on product innovation to enable clients to democratize and digitize investing, simplify trading, and modernize wealth management.
Sales Growth: Broadridge recorded a first quarter record of $57 million in closed sales, indicating strong demand for their solutions.
Digital Transformation: Broadridge is driving the digitization of investor and customer communications, with significant improvements in engagement rates.
Recurring Revenue Growth Guidance: Broadridge raised its fiscal 2025 recurring revenue guidance to 6% to 8%, reflecting the SIS acquisition and strong organic growth.
Adjusted EPS Growth Guidance: Broadridge expects adjusted EPS growth of 8% to 12% for fiscal 2025.
Closed Sales Guidance: Broadridge anticipates closed sales between $290 million to $330 million for fiscal 2025.
Core Margin Expansion: Broadridge expects to achieve over 50 basis points of underlying core margin expansion for fiscal 2025.
Quarterly Dividend: Returned $93 million to shareholders in quarterly dividends.
Shareholder Return Plan: The combination of quarterly dividend payments and the acquisition of SIS is expected to absorb approximately $600 million of cash, allowing for potential additional share repurchases over the balance of the year.
The earnings call highlights strong financial performance with 22% growth in Wealth and Investment Management revenue, robust trade volumes, and a positive free cash flow outlook. The Q&A section addresses concerns with strategic investments in digital assets and tokenization, indicating long-term growth potential. Despite some uncertainties in EPS tracking, the overall sentiment is positive, supported by increased shareholder returns and strategic acquisitions. Given these factors, the stock is likely to experience a positive movement in the short term.
The earnings call summary indicates strong financial performance, with 12% venue position growth, 13% trade volume increase, and a 50 basis point margin expansion. The Q&A section reveals optimism in strategic initiatives and a stable backlog. Despite some concerns about sales cycle elongation and lower capital markets growth, the overall sentiment remains positive due to strong recurring revenue, strategic client relationships, and innovative solutions in digitization and tokenization.
The earnings call shows mixed signals. Financial performance is strong with growth in recurring revenue and EPS, but there are operational risks due to restructuring and elongation in sales cycles. The Q&A indicates cautious client behavior and uncertainty in M&A. Shareholder returns are positive, but high Q4 investment may impact margins. Overall, the sentiment is balanced, leading to a neutral stock price prediction.
The earnings call summary shows strong financial performance with record closed sales, a 10% dividend increase, and positive revenue growth guidance. Despite some concerns about acquisition risks and market volatility, analysts' questions reveal confidence in revenue growth and sales pipeline. The new SIS acquisition is expected to be neutral to EPS initially but contributes to revenue. While operating margins declined slightly, the overall sentiment remains positive due to strong sales, digital strategy, and shareholder returns. Given the lack of market cap information, the prediction leans towards a positive stock price movement.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
