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Broadridge Q2 Earnings & Revenues Surpass Estimates, Rise Y/Y
BRBroadridge(BR) ZACKS·2025-01-31 17:20

Core Viewpoint - Broadridge Financial Solutions, Inc. reported strong second-quarter fiscal 2025 results, with earnings and revenues exceeding expectations, indicating robust financial performance and growth potential [1][2]. Financial Performance - Adjusted earnings per share were 1.6,surpassingtheconsensusestimateby12.21.6, surpassing the consensus estimate by 12.2% and increasing 69.6% year-over-year [2]. - Total revenues reached 1.6 billion, exceeding the consensus mark by 3% and rising 12.8% compared to the previous year [2]. - Adjusted operating income was 263million,reflectinga51263 million, reflecting a 51% increase from the year-ago quarter, with an adjusted operating income margin of 16.6%, up 420 basis points year-over-year [3]. Segment Performance - Revenues in the Investor Communication Solutions (ICS) segment grew 15% year-over-year to 1.1 billion, meeting estimates [3]. - The Global Technology and Operations (GTO) segment reported revenues of 440million,whichwasslightlybelowtheestimatebutshoweda9440 million, which was slightly below the estimate but showed a 9% year-over-year increase [3]. Cash Flow and Debt - The company ended the quarter with cash and cash equivalents of 289.9 million, a slight decrease from 292.8millioninthepreviousquarter[4].Longtermdebtincreasedto292.8 million in the previous quarter [4]. - Long-term debt increased to 3.7 billion from 3.6billionattheendofthepriorquarter[4].Broadridgegenerated3.6 billion at the end of the prior quarter [4]. - Broadridge generated 236.7 million in cash from operating activities and paid out $102.8 million in dividends [4]. Future Guidance - For fiscal year 2025, Broadridge anticipates recurring revenue growth of 6-8% and adjusted earnings per share growth of 8-12% [5]. - The adjusted operating income margin is projected to be 20% [5].