Core Insights - Wall Street analysts forecast Jack Henry (JKHY) will report quarterly earnings of $1.30 per share, reflecting a year-over-year increase of 9.2% [1] - Anticipated revenues are projected to be $586.14 million, showing an increase of 8.8% compared to the same quarter last year [1] Earnings Estimates - There has been no revision in the consensus EPS estimate for the quarter over the last 30 days, indicating stability in analysts' forecasts [2] - Revisions to earnings projections are crucial for predicting investor behavior and stock price performance [3] Revenue Projections - Analysts estimate 'Revenue- Core' to be $180.50 million, representing a year-over-year change of +8.3% [5] - 'Revenue- Corporate & Other' is expected to reach $22.92 million, indicating a change of +10.4% from the previous year [5] - 'Revenue- Complementary' is projected at $163.77 million, reflecting a +9.7% change year-over-year [5] - 'Revenue- Payments' is forecasted to be $218.32 million, with a year-over-year change of +8.1% [6] Segment Income Estimates - 'Segment Income- Core' is expected to reach $103.21 million, up from $94.50 million in the same quarter last year [6] - 'Segment Income- Complementary' is projected at $95.48 million, compared to $83.82 million reported last year [6] - 'Segment Income- Payments' is estimated to be $100.56 million, an increase from $92.07 million in the same quarter last year [7] Market Performance - Jack Henry shares have shown a return of -5.8% over the past month, compared to a -0.7% change in the Zacks S&P 500 composite [8] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to mirror overall market performance in the near future [8]

Financial Data and Key Metrics Changes - Broadridge reported strong third quarter results with 8% recurring revenue growth and 9% adjusted EPS growth [9][25] - The company reaffirmed guidance for 6% to 8% recurring revenue growth in constant currency and expects adjusted EPS growth in the middle of the 8% to 12% range [10][43] - Recurring revenues grew 8% to $1,200 million, driven by new sales and higher trade volumes [29][30] Business Line Data and Key Metrics Changes - Governance recurring revenues rose 6%, with equity position growth strengthening to 15% in the quarter [11][30] - Capital Markets reported 10% recurring revenue growth, benefiting from higher trading volumes and strong demand for global post-trade solutions [14][32] - Wealth and Investment Management revenues grew 13%, driven by the acquisition of SIS [16][32] Market Data and Key Metrics Changes - Market trading volumes have been unusually high, positively impacting Broadridge's performance [6][7] - The company has a $450 million revenue backlog, providing strong visibility into growth over the next 12 to 18 months [7][10] - Equity position growth is expected to remain strong, with mid-teens growth anticipated for the fourth quarter [30][34] Company Strategy and Development Direction - Broadridge is focused on digitizing and democratizing investing, simplifying trading, and modernizing wealth management [9][21] - The company aims to leverage its technology to help clients reduce costs and drive innovation amid market uncertainty [7][23] - Broadridge is well-positioned for long-term growth, with a capital-light model and investment-grade balance sheet [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering strong fiscal year results despite market volatility and uncertainty [9][10] - The company noted that periods of uncertainty have historically strengthened its market position [22][23] - Management highlighted ongoing demand for digital solutions and the importance of innovation in navigating economic challenges [52][80] Other Important Information - Broadridge's recurring revenue model provides insulation from market swings, allowing for ongoing growth investments [23][24] - The company is taking a disciplined approach to managing expenses, including a $5 million restructuring charge from closing a print operation [28][39] - Free cash flow for Q3 was $337 million, significantly higher than the previous year, with expectations of 95% to 105% free cash flow conversion for fiscal 2025 [41][43] Q&A Session Summary Question: Demand environment and investment willingness - Management noted a cautious approach from clients regarding new investments, focusing on cost reduction and operational simplification [49][50] Question: Equity position growth and revenue impact - Management explained that while equity position growth is strong, smaller positions do not immediately translate into revenue but may grow over time [54][56] Question: Sales cycle elongation - Management indicated that elongation in sales cycles is being monitored but has not been linked to specific product lines or geographies [60][61] Question: License activity and subscription model transition - Management discussed ongoing efforts to transition clients from a license model to a subscription model, particularly in newly acquired businesses [73][74] Question: Regulatory environment and opportunities - Management expressed optimism about the regulatory environment, highlighting opportunities in digital assets and shareholder engagement [79][80] Question: M&A pipeline attractiveness - Management acknowledged uncertainty in the M&A market but noted potential proprietary deal opportunities [102][103]

Financial Data and Key Metrics Changes - Broadridge reported strong third quarter results with 8% recurring revenue growth and 9% adjusted EPS growth [7][23] - The company reaffirmed guidance for 6% to 8% recurring revenue growth in constant currency and expects adjusted EPS growth in the middle of the 8% to 12% range [8][42] - Recurring revenues grew 8% to $1,200 million, driven by new sales and higher trade volumes [27][36] Business Line Data and Key Metrics Changes - Governance recurring revenues rose 6%, with equity position growth strengthening to 15% [10][28] - Capital Markets reported 10% recurring revenue growth, benefiting from higher trading volumes and strong demand for global post-trade solutions [13][30] - Wealth and Investment Management revenues grew 13%, driven by the acquisition of SIS [15][30] Market Data and Key Metrics Changes - Market trading volumes have been unusually high, positively impacting Broadridge's technology performance [5][6] - The company has a $450 million revenue backlog, providing strong visibility into growth over the next 12 to 18 months [6][20] - Equity position growth is expected to remain in the mid-teens for the full year, with mutual fund and ETF position growth at 6% [31][95] Company Strategy and Development Direction - Broadridge is focused on digitizing and democratizing investing, simplifying trading, and modernizing wealth management [7][19] - The company aims to help clients reduce costs and drive innovation amid market uncertainty [6][21] - Investments in digital solutions and customer communications are expected to drive future growth [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering strong fiscal year results despite market volatility [7][20] - The company noted that periods of uncertainty have historically strengthened its market position [21][43] - Management highlighted the importance of being a trusted partner for clients navigating regulatory changes and market dynamics [22][80] Other Important Information - Broadridge's recurring revenue model provides insulation from market swings, allowing for ongoing growth investments [21][43] - The company is committed to maintaining expense discipline while funding reinvestment in the business [38][40] - Free cash flow for Q3 was $337 million, significantly higher than the previous year [40][41] Q&A Session Summary Question: Demand environment and investment willingness - Management noted a cautious approach from clients regarding new investments, focusing on cost reduction and operational simplification [49][50] Question: Equity position growth and revenue impact - Management highlighted robust growth in revenue positions and smaller positions, which are expected to grow into larger revenue-generating accounts over time [54][56] Question: Sales cycle elongation - Management indicated that elongation in sales cycles is being monitored but has not been linked to specific product lines or geographies [61][62] Question: Margin expansion and planned investments - Management confirmed that they are investing in the business while maintaining margin expansion, with a focus on full-year performance [63][64] Question: Regulatory environment and opportunities - Management expressed optimism about the evolving regulatory landscape and its potential benefits for Broadridge's offerings [80][82] Question: M&A pipeline attractiveness - Management acknowledged uncertainty in the M&A market but indicated that proprietary deals may still present opportunities [103][104]

Financial Performance - Broadridge reported strong Q3 2025 results, including 8% Recurring revenue growth constant currency and 9% Adjusted EPS growth[13] - Q3 2025 Recurring revenues reached $1.204 billion, a 7% increase year-over-year, with constant currency growth of 8%[19] - Adjusted Operating income for Q3 2025 was $405 million, a 10% increase, resulting in an Adjusted Operating income margin of 22.4%, a 100 bps increase[19] - Diluted earnings per share increased by 15% to $2.05, while Adjusted earnings per share grew by 9% to $2.44[19] - The company reaffirms FY'25 guidance of 6-8% Recurring revenue growth constant currency and Adjusted EPS growth in the middle of the 8-12% range[13] Segment Performance - Governance segment revenue reached $740 million, a 6% year-over-year increase[15] - Capital Markets segment revenue was $289 million, a 10% year-over-year increase[15] - Wealth & Investment Management segment revenue totaled $175 million, a 13% year-over-year increase[15] - Within ICS, Regulatory revenue grew by 6% to $365 million, Data-Driven Fund Solutions grew by 8% to $115 million, Issuer solutions grew by 2% to $60 million, and Customer Communications grew by 5% to $199 million[24] Key Growth Drivers - Equity position growth of 15% underscores broad growth across account sizes[17] - Organic growth contributed 6 percentage points to Recurring revenue growth[31] - Acquisitions contributed 2 percentage points to Recurring revenue growth[31] Future Outlook - Broadridge is on track to achieve its three-year financial objectives and drive long-term growth[18] - FY'25 Closed sales guidance was updated to $240 - $300 million[46]

Group 1 - Jack Henry & Associates, Inc. reported deconversion revenue of $9.6 million for the fiscal third quarter ending March 31, 2025, with updated full-year guidance for deconversion revenue estimated between $22 million and $28 million [1][2] - Deconversion revenue primarily arises when a client is acquired by another financial institution, leading to the termination of their contract with Jack Henry, indicating that this revenue is influenced by external factors beyond the company's control [2] - Jack Henry excludes deconversion revenue from its non-GAAP revenue reported in quarterly and annual earnings releases, as it does not reflect the core operations of the business [2] Group 2 - Jack Henry is a financial technology company listed on the S&P 500, focusing on enhancing connections between financial institutions and their clients, with over 48 years of experience in providing technology solutions [4] - The company serves approximately 7,500 clients, emphasizing innovation, personal service, and insight-driven solutions to help reduce barriers to financial health [4]

Core Viewpoint - In times of market volatility, value investing becomes a preferred strategy as investors seek to buy undervalued stocks when others are selling at lower prices [1][2]. Value Investing Strategy - Value investors capitalize on market uncertainty by purchasing stocks at discounted prices when other investors sell [1]. - The strategy can lead to "value traps" if not understood properly, where stocks underperform due to persistent issues rather than temporary problems [3]. Importance of PEG Ratio - The PEG ratio, defined as (Price/Earnings)/Earnings Growth Rate, is a crucial metric for value investors, as a low PEG ratio indicates better value [5]. - Unlike P/E alone, the PEG ratio helps identify a stock's intrinsic value, although it has limitations regarding changing growth rates [5]. Screening Criteria for Value Stocks - Effective screening for value stocks includes criteria such as: - PEG Ratio less than industry median - P/E Ratio less than industry median - Zacks Rank 1 (Strong Buy) or 2 (Buy) - Market Capitalization greater than $1 billion - Average 20-Day Volume greater than 50,000 - Percentage Change in F1 Earnings Estimate Revisions greater than 5% - Value Score of A or B combined with a Zacks Rank of 1, 2, or 3 [6]. Selected Stocks - **Barrick Gold (GOLD)**: A leading gold mining company with 3.9 million ounces of gold and 195,000 tons of copper produced in 2024, holding 89 million ounces of proven and probable gold reserves. It has a Zacks Rank 2 and a Value Score of A, with a five-year expected growth rate of 33.5% [8][9]. - **StoneCo (STNE)**: A financial technology company in Brazil providing various financial services. It has a Zacks Rank 1 and a Value Score of B, with a long-term expected growth rate of 26.3% [9][10]. - **Synovus Financial (SNV)**: A diverse financial services company with a Zacks Rank 2 and a Value Score of A, boasting a five-year expected growth rate of 10.2% [11][12]. - **BGC Group, Inc. (BGC)**: A financial brokerage and technology company with a long-term expected earnings growth rate of 24.7%, holding a Value Score of B and a Zacks Rank of 1 [12][13].

Core Insights - Founder-led companies, while representing less than 5% of the S&P 500 index, contribute significantly to the market, accounting for nearly 15% of the total index's market capitalization, particularly in the technology sector [3][4]. Group 1: Founder-led Companies - Founders exhibit a unique passion and risk appetite, often leading to innovative and successful ventures that reflect their core values [2][5]. - Notable founder-led companies include NVIDIA, Amazon, Meta, Tesla, Berkshire Hathaway, and Netflix, which have redefined industries and created trillion-dollar valuations [3]. Group 2: Performance of Founder-led Companies - A Harvard Business Review study indicates that founder-led companies achieved a market-adjusted return of 12% over three years, contrasting with a negative 26% return for companies with professional CEOs [7]. - Current appealing stocks identified include Netflix, Intercontinental Exchange, and Affirm Holdings [7]. Group 3: Netflix - Netflix, co-founded by Reed Hastings, has a market capitalization of $387.7 billion and has transitioned from DVD rentals to a leading streaming service [9]. - The company is focusing on expanding its original content portfolio and has launched low-priced mobile plans in various countries to drive international growth [11]. - Netflix projects revenues between $43.5 billion and $44.5 billion for 2025, with an operating margin of 29% [13]. Group 4: Intercontinental Exchange (ICE) - ICE, founded by Jeffrey Sprecher, has a market capitalization of $95.6 billion and has reported record net revenues and earnings for 19 consecutive years [14]. - The company is well-positioned for growth due to the digitization of the U.S. residential mortgage industry and the integration of Ellie Mae into its operations [16]. Group 5: Affirm - Affirm, with a market capitalization of $16.3 billion, is a key player in the Buy Now Pay Later (BNPL) segment, collaborating with over 337,000 active merchant partners [18]. - The company aims for profitability starting in Q4 of fiscal 2025 and is planning international expansion into Australia and Western Europe [19].

Core Viewpoint - The market sentiment regarding PayPal Holdings, Inc. (NASDAQ: PYPL) is mixed following its Q1 2025 earnings release, with the stock experiencing volatility throughout the trading day [1]. Summary by Relevant Sections - **Market Reaction**: After a decline in pre-market hours, PayPal's stock initially jumped during early trading, then fell into negative territory, ultimately finishing the day lower [1].

Valuation Metrics - The price-to-earnings (P/E) ratio is a common valuation metric, but for companies with losses or minimal profits, the price-to-sales (P/S) ratio is more effective in identifying undervalued stocks [1] - The price-to-book (P/B) ratio is another useful tool for identifying low-priced stocks with high growth potential, calculated by dividing the stock's current price by its book value per share [2][6] Book Value - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities, calculated by subtracting total liabilities from total assets [4][5] - A P/B ratio of less than one indicates that a stock is trading below its book value, suggesting it may be undervalued, while a ratio above one may indicate overvaluation [6][7] Stock Examples - Centene Corporation (CNC) is a diversified healthcare company with a projected 3-5 year EPS growth rate of 11.5%, currently holding a Zacks Rank of 2 and a Value Score of A [16][17] - Pediatrix Medical Group (MD) provides specialized physician services with a projected EPS growth rate of 9.5% and also holds a Zacks Rank of 2 and a Value Score of A [18][19] - Pfizer (PFE), a major pharmaceutical company, has a projected EPS growth rate of 13.8% and maintains a Zacks Rank of 2 and a Value Score of A [19] - StoneCo (STNE) offers financial technology solutions with a projected EPS growth rate of 26.3%, holding a Zacks Rank of 1 and a Value Score of B [20] - Banco Santander (SAN), the largest bank in Spain, has a projected EPS growth rate of 9.6% and a Zacks Rank of 2 with a Value Score of A [21][22] Screening Parameters - Stocks with a P/B ratio less than the industry median indicate potential for price appreciation [12] - A P/S ratio lower than the industry average makes a stock more attractive [12] - A P/E ratio (F1) below the industry median is considered favorable [13] - A PEG ratio of less than 1 suggests that a stock is undervalued relative to its growth prospects [14] - Stocks should have a minimum trading price of $5 and an average 20-day volume of at least 100,000 for better liquidity [15]

Financial Data and Key Metrics Changes - The company achieved record revenues of $510 million, representing a 24.7% year-over-year increase on a reported basis and a 25.8% increase on a constant currency basis [27][28] - Adjusted EBITDA margin increased by 125 basis points compared to the previous year [32] - Variable revenues increased by 27%, while total trading revenues rose by 24% [28][29] Business Line Data and Key Metrics Changes - The rates business produced record revenues driven by organic growth across swaps, global government bonds, and mortgages [8] - Credit revenue growth was led by strong performance in municipal bonds and credit derivatives, with high single-digit growth overall [14] - Equities saw double-digit revenue growth, particularly in global ETFs and equity derivatives [8] - Market data revenues increased due to growth in LSEG market data contracts and proprietary data products [8] Market Data and Key Metrics Changes - The U.S. Treasury market experienced significant volatility, with daily yield movements exceeding historical averages [10] - The company's market share in institutional U.S. Treasuries reached over 50% for the fourth consecutive quarter [11] - Emerging markets credit revenues grew nearly 20% year-over-year, indicating strong momentum [21] Company Strategy and Development Direction - The company aims to transition more voice and paper markets to transparent electronic markets, focusing on organic growth and potential M&A opportunities [37] - There is a strong emphasis on automation and enhancing client relationships to drive future growth [7][20] - The company is prioritizing the onboarding of more liquidity providers and enhancing liquidity pools in its wholesale business [12][21] Management's Comments on Operating Environment and Future Outlook - Management noted that macro uncertainty and geopolitical risks have created a dynamic trading environment, but client engagement remains strong [7][38] - The company is confident in its long-term growth outlook, supported by a diverse global multi-asset footprint [39][106] - Management highlighted the importance of maintaining a resilient electronic trading ecosystem amid market volatility [38] Other Important Information - The company ended the quarter with $1.3 billion in cash and cash equivalents, and free cash flow reached approximately $834 million for the trailing twelve months [33] - A quarterly dividend of $0.12 per share was declared, representing a 20% increase year-over-year [34] Q&A Session Summary Question: Can you provide insights on the rate market's health and customer positioning? - Management discussed unprecedented volatility in the rates market, with significant moves in treasury yields and high yield spreads [46][49] - They emphasized the resilience of market function and the importance of platform reliability during periods of stress [50][51] Question: What is the status of the transition from variable to fixed pricing in the credit market? - Management indicated that the transition is ongoing, with expectations for fixed revenues to increase significantly in the coming quarters [62][64] Question: How does the recent Citadel announcement impact Tradeweb's credit business? - Management expressed confidence that Citadel's entry into the credit space would enhance market velocity and benefit Tradeweb's business [75][76] Question: What are the implications of potential regulatory changes on the treasury market? - Management highlighted that loosening capital requirements could improve liquidity and turnover in the treasury market, benefiting Tradeweb [96][97] Question: How does the perception of U.S. exceptionalism affect Tradeweb's business? - Management noted that while there are concerns about the U.S. brand, the company's diverse business model and international revenue growth provide a buffer against potential risks [105][106]