Broadridge Financial Solutions Beats on EPS But GAAP Results Lag


Broadridge Financial Solutions (NYS: BR) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Broadridge Financial Solutions missed estimates on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share contracted significantly.

Gross margins increased, operating margins dropped, net margins contracted.

Revenue details
Broadridge Financial Solutions recorded revenue of $479.8 million. The five analysts polled by S&P Capital IQ looked for sales of $503.2 million. Sales were 8.5% higher than the prior-year quarter's $442.3 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.12. The five earnings estimates compiled by S&P Capital IQ forecast $0.11 per share on the same basis. GAAP EPS of $0.05 for Q2 were 38% lower than the prior-year quarter's $0.08 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 20.3%, 90 basis points better than the prior-year quarter. Operating margin was 2.2%, 150 basis points worse than the prior-year quarter. Net margin was 1.4%, 100 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $560.6 million. On the bottom line, the average EPS estimate is $0.26.

Next year's average estimate for revenue is $2.34 billion. The average EPS estimate is $1.53.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 239 members out of 248 rating the stock outperform, and 10 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 90 give Broadridge Financial Solutions a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Broadridge Financial Solutions is outperform, with an average price target of $25.75.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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