Broadridge Financial Solutions, Inc.
) is set to report first-quarter 2014 results on Nov 7. Last
quarter, it posted a 6.48% positive surprise. Let's see how
things are shaping up for this announcement.
Growth Factors This Past Quarter
Broadridge's fourth-quarter results were impressive as both
the top and bottom lines surpassed the Zacks Consensus Estimate.
Better-than-expected revenues resulted from Broadridge's solid
closed sales, mainly on account of a significant client win for
its new post-trade processing solution.
Also, cost reduction initiatives and solid growth in net new
businesses were the quarter's positive. We remain optimistic on
Broadridge's strategic acquisitions, new product launches, share
repurchase program and dividend hike. We also believe that its
close association with
) will benefit Broadridge, going forward.
Our proven model does not conclusively show that Broadridge
will beat earnings this quarter. That is because a stock needs to
have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 20 cents. Hence, the difference is 0.00%.
Broadridge's Zacks Rank #3 (Hold) when combined with a 0.00% ESP
makes surprise prediction difficult.
We caution against stocks with Zacks Ranks #4 and 5
(Sell-rated stocks) going into the earnings announcement,
especially when the company is seeing negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that they have the right combination of elements to
post an earnings beat this quarter:
Memorial Production Partners LP
), with Earnings ESP of +6.25% and a Zacks Rank #1 (Strong
Best Buy Co., Inc.
), with Earnings ESP of +30.0% and a Zacks Rank #1 (Strong
ACCENTURE PLC (ACN): Free Stock Analysis
BEST BUY (BBY): Free Stock Analysis Report
BROADRIDGE FINL (BR): Free Stock Analysis
MEMORIAL PRODUC (MEMP): Free Stock Analysis
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