Broadridge Financial's Q4 revenue meets expectations

Overview

• Broadridge Q4 revenue grows 6% to $2.065 bln, beating analyst expectations

• Adjusted EPS for Q4 rises 1% to $3.55, beating analyst expectations, per LSEG data

• Co raises annual dividend 11% to $3.90 per share, 19th consecutive increase

Outlook

• Broadridge expects 5-7% recurring revenue growth constant currency for FY 2026

• Company anticipates 8-12% adjusted EPS growth for FY 2026

• Broadridge projects closed sales of $290-330 mln for FY 2026

Result Drivers

• RECURRING REVENUE - Driven by net new business and internal growth, recurring revenues grew 7%

• EVENT-DRIVEN REVENUE - Increased 12% due to higher volume of mutual fund communications

• DISTRIBUTION REVENUE - Rose 3% due to postage rate increases, despite lower mail volumes

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the professional information services peer group is "buy"

• Wall Street's median 12-month price target for Broadridge Financial Solutions Inc is $257.00, about 3.3% above its August 4 closing price of $248.46

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nPn2HR9L4a