Broadridge Financial Solutions Inc (NYSE:BR) shares are trading lower after it reported third-quarter FY24 results.
The company reported revenue growth of 5% to $1.726 billion, missing the consensus of $1.767 billion.
Recurring revenues increased 4% Y/Y to $1.13 billion, and Distribution revenues rose 4% Y/Y to $533 million. Event-driven segment revenues grew 29% Y/Y to $67 million in the quarter.
Adjusted operating income rose 7% Y/Y to $370 million, with margin expanded to 21.4% from 21.0% a year ago.
Adjusted EPS of $2.23 (+9% Y/Y) missed the consensus of $2.24.
As of March-end, Broadridge held $235.6 million in cash and equivalents.
FY24 Outlook: Broadridge now expects adjusted recurring revenue growth at the low end of prior guidance of 6%-9%.
The company reiterated its outlook for an adjusted operating margin of around 20% while seeing adjusted EPS at the middle of the 8% – 12% range.
Tim Gokey, Broadridge CEO, said, "Closed sales rose 29% as we continue to execute on our strategy to democratize and digitize governance, simplify and innovate trading in capital markets, and modernize wealth management."
"Broadridge remains well-positioned for long-term growth and is on track to deliver on our three-year growth objectives including 5-8% organic Recurring revenue growth, 7-9% total Recurring revenue growth constant currency, and 8-12% Adjusted EPS growth."
Investors can gain exposure to the stock via Motley Fool Mid-Cap Growth ETF (BATS:TMFM) and Bahl & Gaynor Small/Mid Cap Income Growth ETF (NYSE:SMIG).
Price Action: BR shares are down 5.7% at $189.84 at the last check Wednesday.
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