Broadridge Q1 Earnings Drop Despite Revenue Growth; Misses Street View; Backs Outlook

(RTTNews) - Broadridge Financial Solutions, Inc. (BR) that provides technology-driven solutions for the financial services industry, on Wednesday reported a drop in earnings despite higher-than-expected revenue growth in the first quarter of the 2023 fiscal. Earnings fell short of analysts' estimates.

Earnings decreased to $50.4 million or $0.42 per share from $67.2 million or $0.57 per share in the previous year's first quarter.

Excluding items, adjusted earnings declined to $99.7 million or $0.84 per share from $126.3 million or $1.07 per share in the comparable prior period.

5 analysts polled by Thomson Reuters were expecting the company to report earnings of $0.88 per share. Analysts typically exclude one-time items.

Revenues increased to $1.28 billion from 1.19 billion in the first quarter of the previous fiscal. Recurring revenues grew 7% whereas the growth in constant currency terms was 9%.

5 analysts polled by Thomson Reuters were expecting the company to report revenues of $1.26 billion.

The company also reaffirmed its guidance for the fiscal year ending in June 2023, including 6 - 9% Recurring revenue growth constant currency and 7 - 11% Adjusted EPS growth.

Shares of Broadridge Financial Solutions are trading in pre-market at $147.05, down $2.55 or 1.70 percent from the previous close.