Broadridge (BR) Reports Q4: Everything You Need To Know Ahead Of Earnings

Over the past six months, Broadridge’s stock price fell to $219.37. Shareholders have lost 6.6% of their capital, which is disappointing considering the S&P 500 has climbed by 10.6%. This may have investors wondering how to approach the situation.

Given the weaker price action, is now the time to buy BR? Find out in our full research report, it’s free.

Why Does BR Stock Spark Debate?

Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.

Two Positive Attributes:

1. Long-Term Revenue Growth Shows Strong Momentum

Reviewing a company’s long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Luckily, Broadridge’s sales grew at a solid 8.9% compounded annual growth rate over the last five years. Its growth beat the average business services company and shows its offerings resonate with customers.

2. Increasing Free Cash Flow Margin Juices Financials

Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.

As you can see below, Broadridge’s margin expanded by 8.6 percentage points over the last five years. This is encouraging, and we can see it became a less capital-intensive business because its free cash flow profitability rose more than its operating profitability. Broadridge’s free cash flow margin for the trailing 12 months was 17.4%.

One Reason to be Careful:

Projected Revenue Growth Is Slim

Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.

Over the next 12 months, sell-side analysts expect Broadridge’s revenue to rise by 3.6%, a deceleration versus its 8.9% annualized growth for the past five years. This projection doesn't excite us and indicates its products and services will face some demand challenges. At least the company is tracking well in other measures of financial health.

Final Judgment

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Fair Isaac Corporation and the rest of the data & business process services stocks fared in Q3.

A combination of increasing reliance on data and analytics across various industries and the desire for cost efficiency through outsourcing could mean that companies in this space gain. As functions such as payroll, HR, and credit risk assessment rely on more digitization, key players in the data & business process services industry could be increased demand. On the other hand, the sector faces headwinds from growing regulatory scrutiny on data privacy and security, with laws like GDPR and evolving U.S. regulations potentially limiting data collection and monetization strategies. Additionally, rising cyber threats pose risks to firms handling sensitive personal and financial information, creating outsized headline risk when things go wrong in this area.

The 11 data & business process services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 2.7% on average since the latest earnings results.

Fair Isaac Corporation

Creator of the three-digit number that can determine whether you get a mortgage or credit card, Fair Isaac Corporation develops analytics software and the widely used FICO Score, which is the standard measure of consumer credit risk in the United States.

Fair Isaac Corporation reported revenues of $515.8 million, up 13.6% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with full-year revenue guidance missing analysts’ expectations and a slight miss of analysts’ ARR estimates.

Fair Isaac Corporation delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 1.3% since reporting and currently trades at $1,650.

Best Q3: Planet Labs

Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.

Planet Labs reported revenues of $81.25 million, up 32.6% year on year, outperforming analysts’ expectations by 12.7%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.

Planet Labs achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 55.7% since reporting. It currently trades at $20.39.

Weakest Q3: Verisk

Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.

Verisk reported revenues of $768.3 million, up 5.9% year on year, falling short of analysts’ expectations by 1.1%. It was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations and a slight miss of analysts’ revenue estimates.

Verisk delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 4.8% since the results and currently trades at $221.09.

Read our full analysis of Verisk’s results here.

ADP

Processing one out of every six paychecks in the United States, ADP provides cloud-based human capital management solutions that help businesses manage payroll, benefits, talent acquisition, and HR administration.

ADP reported revenues of $5.18 billion, up 7.1% year on year. This print topped analysts’ expectations by 0.9%. Aside from that, it was a mixed quarter as it also logged a narrow beat of analysts’ revenue estimates but revenue guidance for next quarter meeting analysts’ expectations.

The stock is down 9.5% since reporting and currently trades at $253.10.

Read our full, actionable report on ADP here, it’s free for active Edge members.

Broadridge

Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.

Broadridge reported revenues of $1.59 billion, up 11.7% year on year. This result surpassed analysts’ expectations by 3.4%. It was a stunning quarter as it also produced a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.

The stock is up 1.4% since reporting and currently trades at $224.26.

Read our full, actionable report on Broadridge here, it’s free for active Edge members.

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how data & business process services stocks fared in Q3, starting with SS&C .

A combination of increasing reliance on data and analytics across various industries and the desire for cost efficiency through outsourcing could mean that companies in this space gain. As functions such as payroll, HR, and credit risk assessment rely on more digitization, key players in the data & business process services industry could be increased demand. On the other hand, the sector faces headwinds from growing regulatory scrutiny on data privacy and security, with laws like GDPR and evolving U.S. regulations potentially limiting data collection and monetization strategies. Additionally, rising cyber threats pose risks to firms handling sensitive personal and financial information, creating outsized headline risk when things go wrong in this area.

The 11 data & business process services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 3.4% on average since the latest earnings results.

SS&C

Founded in 1986 as a bridge between technology and financial services, SS&C Technologies provides software and software-enabled services that help financial firms and healthcare organizations automate complex business processes.

SS&C reported revenues of $1.57 billion, up 7% year on year. This print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but a miss of analysts’ billings estimates.

“SS&C reported record adjusted revenues of $1,569 million and adjusted consolidated EBITDA of $619 million. These numbers attest to the company’s long-term financial and operating strength. The 22% increase to $1,101 million in operating cash flow through three quarters gives us flexibility to pursue growth opportunities as we continue to pay down debt and repurchase shares,” says Bill Stone, Chairman and Chief Executive Officer.

Interestingly, the stock is up 7.6% since reporting and currently trades at $87.

Best Q3: Planet Labs

Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.

Planet Labs reported revenues of $81.25 million, up 32.6% year on year, outperforming analysts’ expectations by 12.7%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Planet Labs scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 50.5% since reporting. It currently trades at $19.70.

Weakest Q3: Verisk

Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.

Verisk reported revenues of $768.3 million, up 5.9% year on year, falling short of analysts’ expectations by 1.1%. It was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations and a slight miss of analysts’ revenue estimates.

Verisk delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 3.4% since the results and currently trades at $224.25.

Read our full analysis of Verisk’s results here.

Fair Isaac Corporation

Creator of the three-digit number that can determine whether you get a mortgage or credit card, Fair Isaac Corporation develops analytics software and the widely used FICO Score, which is the standard measure of consumer credit risk in the United States.

Fair Isaac Corporation reported revenues of $515.8 million, up 13.6% year on year. This print met analysts’ expectations. Taking a step back, it was a slower quarter as it logged full-year revenue guidance missing analysts’ expectations and a slight miss of analysts’ ARR estimates.

Fair Isaac Corporation had the weakest full-year guidance update among its peers. The stock is up 3.4% since reporting and currently trades at $1,685.

Read our full, actionable report on Fair Isaac Corporation here, it’s free for active Edge members.

Broadridge

Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.

Broadridge reported revenues of $1.59 billion, up 11.7% year on year. This result topped analysts’ expectations by 3.4%. It was a stunning quarter as it also recorded a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.

The stock is up 1.3% since reporting and currently trades at $224.15.

Read our full, actionable report on Broadridge here, it’s free for active Edge members.

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Planet Labs and the rest of the data & business process services stocks fared in Q3.

A combination of increasing reliance on data and analytics across various industries and the desire for cost efficiency through outsourcing could mean that companies in this space gain. As functions such as payroll, HR, and credit risk assessment rely on more digitization, key players in the data & business process services industry could be increased demand. On the other hand, the sector faces headwinds from growing regulatory scrutiny on data privacy and security, with laws like GDPR and evolving U.S. regulations potentially limiting data collection and monetization strategies. Additionally, rising cyber threats pose risks to firms handling sensitive personal and financial information, creating outsized headline risk when things go wrong in this area.

The 10 data & business process services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 1.9% on average since the latest earnings results.

Best Q3: Planet Labs

Pioneering the concept of "agile aerospace" with hundreds of small but powerful satellites, Planet Labs operates the world's largest fleet of Earth observation satellites, capturing daily images of our planet to provide insights on deforestation, agriculture, and climate change.

Planet Labs reported revenues of $81.25 million, up 32.6% year on year. This print exceeded analysts’ expectations by 12.7%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

“We delivered a strong third quarter, marked by continued momentum in the business, accelerated revenue growth, and excellent progress on our profitability goals. We’re seeing strong traction with our AI-enabled global monitoring solutions, demonstrated by our recent award under the NGA’s Luno B program and expansion with NATO. We’re announcing our acquisition of Bedrock Research, an AI-enabled solutions company, to accelerate our roadmap in support of this demand,” said Will Marshall, Planet’s Co-Founder, Chief Executive Officer and Chairperson.

Planet Labs scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 32% since reporting and currently trades at $17.29.

Read why we think that Planet Labs is one of the best data & business process services stocks, our full report is free.

Broadridge

Processing over $10 trillion in equity and fixed income trades daily and managing proxy voting for over 800 million equity positions, Broadridge Financial Solutions provides technology-driven solutions that power investing, governance, and communications for banks, broker-dealers, asset managers, and public companies.

Broadridge reported revenues of $1.59 billion, up 11.7% year on year, outperforming analysts’ expectations by 3.4%. The business had a stunning quarter with a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.

The market seems content with the results as the stock is up 4.4% since reporting. It currently trades at $231.

Is now the time to buy Broadridge? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Verisk

Processing over 2.8 billion insurance transaction records annually through one of the world's largest private databases, Verisk Analytics provides data, analytics, and technology solutions that help insurance companies assess risk, detect fraud, and make better business decisions.

Verisk reported revenues of $768.3 million, up 5.9% year on year, falling short of analysts’ expectations by 1.1%. It was a slower quarter as it posted full-year revenue guidance missing analysts’ expectations and a slight miss of analysts’ revenue estimates.

Verisk delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 6.8% since the results and currently trades at $216.45.

Read our full analysis of Verisk’s results here.

SS&C

Founded in 1986 as a bridge between technology and financial services, SS&C Technologies provides software and software-enabled services that help financial firms and healthcare organizations automate complex business processes.

SS&C reported revenues of $1.57 billion, up 7% year on year. This number beat analysts’ expectations by 1.2%. Zooming out, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but a miss of analysts’ billings estimates.

SS&C had the weakest full-year guidance update among its peers. The stock is up 7.5% since reporting and currently trades at $86.98.

Read our full, actionable report on SS&C here, it’s free for active Edge members.

CSG

Powering billions of critical customer interactions annually, CSG Systems provides cloud-based software platforms that help companies manage customer interactions, process payments, and monetize their services.

CSG reported revenues of $279.3 million, up 2.4% year on year. This result topped analysts’ expectations by 0.5%. Overall, it was an exceptional quarter as it also put up a beat of analysts’ EPS estimates and a narrow beat of analysts’ revenue estimates.

CSG had the slowest revenue growth among its peers. The stock is down 1.5% since reporting and currently trades at $77.10.

Read our full, actionable report on CSG here, it’s free for active Edge members.