Broadridge Financial Solutions Earnings Preview

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Investors are on the edge of their collective seats, hoping that Broadridge Financial Solutions (NYS: BR) will top analyst expectations for the third consecutive quarter. The company will unveil its latest earnings on Tuesday, Feb. 7. Broadridge Financial Solutions is a global provider of investor communication, securities processing, and clearing and outsourcing solutions to the financial services industry.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Broadridge Financial Solutions, with four out of five rating it a buy and the remainder rating it a hold. Analysts like Broadridge Financial Solutions better than competitor CoreLogic overall. Analysts still rate the stock a moderate buy, but they are a bit more wary about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $498.7 million in revenue this quarter. That would represent a rise of 12.7% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.12 per share. Estimates range from $0.12 to $0.13.

What our community says:
CAPS All-Stars are solidly backing the stock, with 100% assigning it an outperform rating. The community at large agrees with the All-Stars, with 96% granting it a rating of outperform. Fools have embraced Broadridge Financial Solutions, though the message boards have been quiet lately, with only 67 posts in the past 30 days. Broadridge Financial Solutions has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
Broadridge Financial Solutions' income has fallen year-over-year by an average of 3.4% over the past five quarters. Revenue has now gone up for three straight quarters.

Now, a look at how efficient management has been at running the business. Traditionally, margins serve as an illustration of how efficiently a company captures portions of sales dollars. Broadridge Financial Solutions' net margins have increased year over year for the last three quarters. Net margins reflect what percentage of revenue becomes profit. Here is how Broadridge Financial Solutions has been doing for the last four quarters:

Quarter

Q1

Q4

Q3

Q2

Net Margin

3.5%

15%

5.6%

2.4%

One final thing: If you want to keep tabs on Broadridge Financial Solutions' movements, and for more analysis on the company, make sure you add it to your Watchlist.

The Motley Fool owns shares of Broadridge Financial Solutions.. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Earnings estimates provided by Zacks.

At the time this article was published

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