Description
Broadridge delivered a mixed set of results in the quarter. Recurring sales increased by 8% on a constant currency basis, and both segments experienced significant growth but overall revenues were below analyst expectations. However, the top-line growth combined with strict expense control helped to boost adjusted EPS by 11% which resulted in an earnings beat. Rates continue to increase. Also, volatility stayed high. Asset managers reduced their discretionary spending while the dollar stayed relatively strong. With 93% of its revenues from recurring fees, Broadridge’s resilient business model performed well in this uncertainty. Digital solutions are also in high demand. Equity position growth remained strong, with managed account growth in the double digits and non-managed account growth in the mid-single digits. The management anticipates a significant increase in equities and funds. We give Broadridge Financial Solutions, Inc. a ‘Hold’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures
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