Broadridge's Q1 Earnings Meet Estimates, Decline Year Over Year

Core Insights - Broadridge Financial Solutions, Inc. reported first-quarter fiscal 2025 earnings that matched the Zacks Consensus Estimate, but revenues fell short of expectations [1] Financial Performance - Adjusted earnings per share were $1, reflecting an 8.3% decrease from the same quarter last year [1] - Total revenues amounted to $1.42 billion, missing the consensus mark by 3.9% and showing a slight year-over-year decline [1] - Recurring revenues reached $900 million, representing a 3% increase year over year on a reported basis and a 4% increase on a constant currency basis [2] Segment Performance - Revenues in the Investor Communication Solutions segment decreased by 1% year over year to $1 billion, slightly above the estimate of $1.52 billion [3] - The Global Technology and Operations segment generated revenues of $407 million, which was below the estimate of $437.5 million but increased by 1% year over year [3] Operating Metrics - Adjusted operating income was $185 million, down 7% from the previous year, with an adjusted operating income margin of 13%, declining by 90 basis points year over year [4] - The company ended the quarter with cash and cash equivalents of $292.8 million, down from $304.4 million in the previous quarter, while long-term debt increased to $3.6 billion from $3.4 billion [4] Cash Flow and Capital Expenditures - The company utilized $125.5 million in cash for operating activities, with capital expenditures amounting to $7.9 million during the quarter [5] - Dividends paid out during the quarter totaled $7.9 million [5] Fiscal 2025 Guidance - Broadridge raised its revenue guidance, now expecting recurring revenue growth of 6-8%, up from the previous forecast of 5-7% [6] - Adjusted earnings per share growth is anticipated to be between 8-12%, with an estimated adjusted operating income margin of around 20% [6]