Broadridge Financial Solutions Inc (NYSE:BR)
$ 225.21 4.03 (1.82%) Market Cap: 26.32 Bil Enterprise Value: 29.36 Bil PE Ratio: 38.96 PB Ratio: 11.93 GF Score: 93/100

Q3 2024 Broadridge Financial Solutions Inc Earnings Call Transcript

May 08, 2024 / 12:30PM GMT
Release Date Price: $190.46 (-5.41%)

Key Points

Positve
  • Broadridge Financial Solutions Inc (BR) reported a 4% increase in recurring revenue and a 9% growth in adjusted EPS for the third quarter.
  • Closed sales rose by 29% in the quarter, with year-to-date sales up by 19%, indicating strong market demand and effective sales execution.
  • The company remains on track to achieve 100% free cash flow conversion for the full fiscal year, supporting strategic investments and shareholder returns.
  • Broadridge Financial Solutions Inc (BR) is well-positioned for continued growth, reaffirming its fiscal year 2024 outlook with adjusted EPS expected to grow by 8% to 12%.
  • The company is actively engaging in strategic M&A opportunities, aiming to complement organic growth and enhance long-term value.
Negative
  • The timing of annual meetings affected revenue recognition, pushing some expected governance revenues from the third to the fourth quarter.
  • Despite overall growth, the fund and ETF record growth declined to negative 1% for the quarter, reflecting challenges in certain product segments.
  • The company's recurring revenue growth for the fiscal year is projected at the lower end of the guidance range (6%), which may indicate slower than anticipated growth in some areas.
  • Regulatory communications revenue was flat, impacted by the shift in timing of annual meetings and mixed position growth trends.
  • The transition of the E-Trade platform and its integration into Broadridge's offerings has partially offset revenue growth in the Wealth and Investment Management segment.
Operator

Good day, and welcome to the Broadridge Financial Solutions Third Quarter and Fiscal Year 2024 Earnings Conference Call. (Operator Instructions)

Please note this event is being recorded.

I would now like to hand the call over to Edings Thibault, Head of Investor Relations. Please go ahead.

W. Edings Thibault
Broadridge Financial Solutions, Inc. - Head of IR

Thank you, Andrea. Good morning, everybody, and welcome to Broadridge's Third Quarter Fiscal Year 2024 Earnings Conference Call. Our earnings release and the slides that accompany this call may be found on the Investor Relations section of broadridge.com.

Joining me on the call this morning are Tim Gokey, our Chief Executive Officer; and our Chief Financial Officer, Edmund Reese.

Before I turn the call over to Tim, a few standard callouts. One, we'll be making forward-looking statements on today's call regarding Broadridge that involve risks. A summary of these risks can be found on the second page of the slides and a more complete description on our annual report on

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