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Mar 31, 2020
Broadridge Q3 2020 Earnings Report
Broadridge's financial performance during the third quarter of fiscal year 2020 demonstrated the resilience of its business model, with recurring revenues rising and adjusted EPS increasing despite lower event-driven activity and a proxy timing shift.
Key Takeaways
Broadridge reported a 2% increase in total revenues to $1,250 million. Recurring fee revenues increased by 9%, while adjusted EPS rose by 5%. The company's updated guidance reflects strong second-half organic growth and the impact of Covid-19.
Total revenues increased by 2% to $1,250 million.
Recurring fee revenues increased by 9% to $835 million.
Adjusted EPS increased by 5% to $1.67.
Closed sales rose 20% to $44 million.
Revenue by Segment
Forward Guidance
Broadridge updated its financial guidance for fiscal year 2020, reflecting expectations for recurring revenue growth and adjusted EPS growth.
Positive Outlook
- Recurring fee revenue growth is expected to be in the range of 8-10%.
- Adjusted Operating income margin - Non-GAAP is expected to be approximately 18%.
- Adjusted earnings per share growth - Non-GAAP is expected to be in the range of 5-7%.
- Total revenue growth is expected to be at the low end of the 3-6% range.
- Operating income margin - GAAP is expected to be approximately 14%.
Challenges Ahead
- Diluted earnings per share growth is reduced from (4) – 0% to (7) – (3)%.
- Adjusted earnings per share growth - Non-GAAP is reduced from the low end of 8 – 12% to 5 – 7%.
- Lower event-driven activity.
- Shift of proxy communications into the fourth quarter as a result of Covid-19 impacted internal growth negatively.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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