(Reuters) -Fintech firm Broadridge Financial reported fourth-quarter profit above Wall Street estimates on Tuesday, helped by demand for its investor communication offerings and global technology businesses.
WHY IT’S IMPORTANT
Broadridge is one of the largest investor communication and technology services provider in the U.S. to banks, broker-dealers, and other financial institutions. It plays a critical role in enabling proxy voting, trade processing, and regulatory compliance.
The company’s two mainstay businesses are investor communication solutions, which account for the majority of its revenue, and global technology and operations.
Investor communication solutions engage in distribution of proxy materials and other corporate communication.
The global technology and operations unit offers products such as desktop productivity tools, portfolio management, cash management, clearance and settlement.
CONTEXT
The Lake Success, New York-based company, benefited from steady demand for proxy communications from companies to shareholders ahead of annual meetings. It has also been increasingly leaning on growth in its digital wealth and market infrastructure platforms, as volatile markets and revived deal activity boost client need for real-time data and analytics.
KEY QUOTE
“We are on track to deliver again on our three-year top- and bottom-line growth objectives,” said CEO Tim Gokey.
Broadridge targets 7–9% recurring revenue CAGR and 8–12% adjusted EPS CAGR over fiscal years 2024 to 2026.
BY THE NUMBERS
Broadridge posted adjusted earnings per share of $3.55 for the three months ended June 30, compared with analysts’ average estimate of $3.50, according to data compiled by LSEG.
Revenue at its investor communication solutions unit grew 5% to $1.60 billion. The global technology and operations segment also saw a 12% revenue jump to $464.7 million.
The company announced fiscal 2026 guidance of 5-7% recurring revenue growth constant currency and 8-12% adjusted EPS growth.
Total revenue for the quarter increased 6% to $2.07 billion.
(Reporting by Atharva Singh; Editing by Harikrishnan Nair)
Comments