Broadridge (BR) to Report Q2 Earnings: What's in Store?

Broadridge Financial Solutions, Inc. BR is set to report second-quarter fiscal 2022 results on Feb 1, 2022.

BR has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate in two of the trailing four quarters, matching the same in the other two. BR has a trailing four-quarter earnings surprise of 2.3%, on average.

Broadridge Financial Solutions, Inc. Price and EPS Surprise

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

Q2 Expectations

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.21 billion, which indicates a 14.5% increase from the year-ago quarter’s reported figure. Expected growth is likely to have been driven by internal growth (mutual fund and ETF record growth), new businesses, increased equity position, capital markets, higher volume of customer communications (driven by new sales and growth in digital), and impact of the Itiviti acquisition.

The Zacks Consensus Estimate for net revenues in the Global Technology and Operations segment is pegged at $361 million, which indicates a year-over-year increase of 19.5%. The consensus estimate for net revenues at Investor Communication Solutions is pegged at $846 million, which suggests a year-over-year increase of 7.9%.

The bottom line in the to-be-reported quarter is likely to have benefited from operating strength. The consensus mark for earnings is pegged at 81 cents per share, which suggests a year-over-year increase of 11%.

What Our Model Says

Our proven model does not conclusively 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. But that’s 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 a Zacks Rank #3.

Stocks That Warrant a Look

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

Clean Harbors CLH has an Earnings ESP of +7.20% and a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 50.5%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CLH had a decent run on the bourses in the past year, with shares appreciating 14.7% against a 9.6% decline of the industry it belongs to.

WEX WEX has an Earnings ESP of +1.21% and a Zacks Rank #3. It has a trailing four-quarter earnings surprise of 8.6%, on average.

WEX’s shares have lost 20.8% in the past year compared with a 21.6% decline of the industry it belongs to.

Affirm Holdings AFRM has an Earnings ESP of +11.63% and a Zacks Rank #2.  

AFRM’s shares have declined 48.7% over the past year compared with a 1.5% rise of the industry it belongs to.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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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.