Broadridge (BR) To Post Q1 Earnings: What's In The Offing?

Broadridge Financial Solutions Inc. (NYSE:BR) is set to report first-quarter fiscal 2020 results on Nov 6, before the bell.

The company’s shares have gained 32.4% year to date, significantly outperforming the 27.4% rally of the industry it belongs to.

What to Expect This Time

The Zacks Consensus Estimate for revenues is pegged at $980.3 million, indicating a 0.8% increase from the year-ago quarter’s reported figure. Higher Global Technology and Operations segment revenues driven by acquisitions, internal growth and higher net new business from closed sales are likely to have benefited the top line.

In the fourth quarter of fiscal 2019, Broadridge’s total revenues of $1.21 billion decreased 8% year over year.

The consensus mark for earnings is pegged at 72 cents, indicating a year-over-year decline of 8.9%. Decline in recurring fee revenues is likely to have hurt the bottom line.

In the fourth quarter of fiscal 2019, adjusted earnings of $1.72 per share were up 8% on a year-over-year basis.

What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for Broadridge this season. 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 -2.10% and a Zacks Rank #4 (Sell).

Stocks to Consider

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:

FleetCor Technologies, Inc. (NYSE:FLT) has an Earnings ESP of +1.10% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Elastic N.V. (NYSE:ESTC) has an Earnings ESP of +2.11% and a Zacks Rank #3.

Fidelity National Information Services, Inc. (NYSE:FIS) has an Earnings ESP of +0.13% and a Zacks Rank #3.

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