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Broadridge (BR) to Post Q1 Earnings: What's in the Offing?

Broadridge Financial Solutions, Inc. BR is set to report first-quarter fiscal 2021 results on Oct 30.

Q1 Expectations

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $960 million, which indicates a 1.2% increase from the year-ago quarter’s reported figure. Expected growth is likely to have been driven by acquisitions, organic growth and higher trading volumes.

The Zacks Consensus Estimate for net revenues in the Global Technology and Operations segment is pegged at $304 million, which indicates year-over-year increase of 10.9%. The consensus estimate for net revenues at Investor Communication Solutions is pegged at $690 million, which suggests  year-over-year decline of 1.8%.

In the fiscal fourth quarter, Broadridge’s total revenues of $1.36 billion increased 12% year over year.

Broadridge Financial Solutions, Inc. Price and EPS Surprise

Broadridge Financial Solutions, Inc. Price and EPS Surprise

Broadridge Financial Solutions, Inc. price-eps-surprise | Broadridge Financial Solutions, Inc. Quote

The bottom line in the to-be-reported quarter is expected to have been driven by operating strength. The consensus mark for earnings is at 63 cents, which indicates year-over-year decline of 7.4%.

In the fiscal fourth quarter, adjusted earnings of $2.15 per share were up 25% on a year-over-year basis.

What Our Model Says

Our proven model does not predict an earnings beat for Broadridge this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Broadridge has an Earnings ESP of 0.00% and currently carries a Zacks Rank #2.

Other Stocks That Warrant a Look

Here are a few other stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these too have the right combination of elements to beat on earnings this season.

Spotify SPOT has an Earnings ESP of +43.88% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Republic Services RSG has an Earnings ESP of +1.93% and a Zacks Rank #3.

Waste Connections WCN has an Earnings ESP of +0.57% and a Zacks Rank #3.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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