Broadridge Financial Solutions (NYSE:BR) Posts Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Broadridge Financial Solutions reported earnings of $3.55 per share, exceeding analyst expectations by $0.04, with revenues of $2.07 billion for the quarter.
• The company announced an increase in its quarterly dividend to $0.975 per share, up from $0.88, representing an annual yield of 1.5%.
• Broadridge's stock rose by 6.5% following the earnings announcement, with a current market capitalization of $31.08 billion.

Broadridge Financial Solutions (NYSE:BR - Get Free Report) announced its earnings results on Tuesday. The business services provider reported $3.55 EPS for the quarter, beating analysts' consensus estimates of $3.51 by $0.04, Zacks reports. The business had revenue of $2.07 billion during the quarter, compared to analysts' expectations of $2.06 billion. Broadridge Financial Solutions had a net margin of 12.19% and a return on equity of 42.72%. The business's revenue was up 6.2% compared to the same quarter last year. During the same period in the prior year, the company earned $3.50 earnings per share. Broadridge Financial Solutions updated its FY 2026 guidance to 9.230-9.580 EPS.

Broadridge Financial Solutions Stock Performance

Shares of Broadridge Financial Solutions stock traded down $2.07 during trading on Thursday, hitting $264.83. 718,806 shares of the company's stock were exchanged, compared to its average volume of 582,085. The business has a 50-day simple moving average of $242.67 and a 200-day simple moving average of $238.48. Broadridge Financial Solutions has a 52-week low of $206.29 and a 52-week high of $271.91. The stock has a market capitalization of $31.11 billion, a price-to-earnings ratio of 37.35 and a beta of 0.94. The company has a debt-to-equity ratio of 1.04, a quick ratio of 1.32 and a current ratio of 0.98.

Broadridge Financial Solutions Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 2nd. Stockholders of record on Thursday, September 11th will be paid a dividend of $0.975 per share. The ex-dividend date is Thursday, September 11th. This is an increase from Broadridge Financial Solutions's previous quarterly dividend of $0.88. This represents a $3.90 annualized dividend and a dividend yield of 1.5%. Broadridge Financial Solutions's payout ratio is presently 55.01%.

Insider Buying and Selling at Broadridge Financial Solutions

In other news, VP Thomas P. Carey sold 3,607 shares of Broadridge Financial Solutions stock in a transaction on Tuesday, May 13th. The shares were sold at an average price of $237.26, for a total value of $855,796.82. Following the transaction, the vice president directly owned 6,077 shares of the company's stock, valued at $1,441,829.02. The trade was a 37.25% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Pamela L. Carter sold 4,829 shares of the firm's stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $242.23, for a total value of $1,169,728.67. Following the completion of the transaction, the director directly owned 7,242 shares of the company's stock, valued at $1,754,229.66. The trade was a 40.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 17,048 shares of company stock valued at $4,101,083. Company insiders own 1.30% of the company's stock.

Institutional Trading of Broadridge Financial Solutions

Several large investors have recently added to or reduced their stakes in the stock. Woodline Partners LP raised its position in shares of Broadridge Financial Solutions by 6.9% during the 1st quarter. Woodline Partners LP now owns 9,886 shares of the business services provider's stock worth $2,397,000 after purchasing an additional 635 shares during the period. Empowered Funds LLC raised its position in shares of Broadridge Financial Solutions by 41.5% during the first quarter. Empowered Funds LLC now owns 3,957 shares of the business services provider's stock worth $959,000 after purchasing an additional 1,160 shares during the period. Acadian Asset Management LLC lifted its position in shares of Broadridge Financial Solutions by 480.8% in the 1st quarter. Acadian Asset Management LLC now owns 2,544 shares of the business services provider's stock valued at $616,000 after acquiring an additional 2,106 shares in the last quarter. Finally, Brighton Jones LLC purchased a new stake in Broadridge Financial Solutions in the 4th quarter worth about $580,000. 90.03% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

BR has been the topic of a number of recent analyst reports. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $259.00 price target on shares of Broadridge Financial Solutions in a report on Monday, May 19th. Wall Street Zen upgraded Broadridge Financial Solutions from a "hold" rating to a "buy" rating in a research note on Friday, May 9th. Morgan Stanley raised their target price on Broadridge Financial Solutions from $222.00 to $261.00 and gave the company an "equal weight" rating in a research note on Wednesday. Finally, Needham & Company LLC raised their price target on Broadridge Financial Solutions from $300.00 to $305.00 and gave the stock a "buy" rating in a research report on Wednesday. Five equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average price target of $258.17.

About Broadridge Financial Solutions

Broadridge Financial Solutions, Inc provides investor communications and technology-driven solutions for the financial services industry. The company's Investor Communication Solutions segment processes and distributes proxy materials to investors in equity securities and mutual funds, as well as facilitates related vote processing services; and distributes regulatory reports, class action, and corporate action/reorganization event information, as well as tax reporting solutions.