Analyst Note| Rajiv Bhatia, CFA |
Broadridge Financial Solution reported a solid fiscal fourth quarter, with revenue of $1.53 billion beating the FactSet consensus by 4%. Adjusted EPS of $2.19 was in line with the consensus as the firm continues to invest in its offerings, particularly in the global technology and operations segment. As is customary, Broadridge provided its initial outlook for the next fiscal year, which was a touch above the consensus at the midpoint. While these results were solid, in our view, they were not enough to materially move the stock higher as the firm’s valuation has risen. We will maintain our narrow moat rating and expect to raise our fair value estimate to $158 per share from $142 as we take our revenue estimates higher.