Broadridge(BR) Prnewswire·2025-01-31 12:00Core Insights - Broadridge Financial Solutions reported strong financial results for the second quarter of fiscal year 2025, with recurring revenues growing by 9% and diluted EPS increasing by 103% to $1.20 [1][5][6] - The company reaffirmed its fiscal year 2025 guidance, projecting 6-8% recurring revenue growth and 8-12% adjusted EPS growth [3][4] Financial Performance - Recurring revenues reached $980 million, up from $899 million, reflecting a 9% increase year-over-year [1][5] - Total revenues increased by 13% to $1,589 million compared to $1,405 million in the same quarter last year [1][5] - Operating income rose 69% to $211 million, with an operating margin of 13.3%, up from 8.9% [1][6] - Adjusted operating income increased by 51% to $263 million, with a margin of 16.6% compared to 12.4% in the prior year [1][6] Earnings Metrics - Diluted EPS grew 103% to $1.20, while adjusted EPS increased by 70% to $1.56 [1][5] - Net earnings surged 103% to $142 million, and adjusted net earnings rose 68% to $184 million [1][6] Revenue Breakdown - Event-driven revenues saw a significant increase of 126%, reaching $125 million, driven by higher mutual fund communications [6][37] - Distribution revenues increased by 7% to $484 million, primarily due to a postage rate increase [6][37] - By product line, recurring revenue growth was driven by various segments, including a notable 18% increase in issuer services [6][37] Guidance and Strategic Outlook - The company reaffirmed its fiscal year 2025 guidance, maintaining expectations for recurring revenue growth of 6-8% and adjusted EPS growth of 8-12% [3][4] - Broadridge is focused on long-term growth strategies aimed at democratizing and digitizing investing, simplifying trading, and modernizing wealth management [2][3] Acquisition Impact - The acquisition of Kyndryl's Securities Industry Services (SIS) business for approximately $185 million is expected to enhance Broadridge's offerings in wealth management and capital markets [12]