Broadridge Earnings: Relatively Steady Quarter and Outlook

Broadridge reported an OK fiscal second quarter ahead of its seasonally strong fiscal second half. Revenue of $1.41 billion and adjusted EPS of $0.92 compare modestly favorably with the FactSet consensus estimates of $1.40 billion and $0.89, respectively. The market is reacting negatively to the firm’s results, which we attribute to healthy valuation going into the quarter and modestly lower expectations for equity position growth. Broadridge maintained its fiscal 2024 outlook for firmwide recurring revenue growth, operating margins, earnings per share, and closed sales but provided updates to more granular aspects. We will maintain our narrow moat rating and $190 fair value estimate on Broadridge’s shares.