Broadridge Financial Solutions ( NYSE: BR ) turned in better-than-expected fiscal Q4 revenue and earnings and increased its annual dividend by 13%, marking 16 straight years of increases.
For its fiscal 2023, ending June 30, 2023, the company expects adjusted EPS to rise 7%-10% , implying a range of $6.91-$7.11 and a midpoint of ~$7.01. That compares with the consensus estimate of $6.99.
The company, which provides financial technology to banks, broker-dealers, and asset and wealth managers, expects recurring revenue growth of 6%-9% for FY2023, down from 16% growth in FY2022 and closed sales of $270M-$310M (vs. $281.9M in FY2022). Adjusted operating margin is expected to increase by about 50 basis points, implying 19.2% margin vs. 18.7% in the year just ended.
"A strong fourth quarter capped another great year for Broadridge ( BR ), with record closed sales, 16% recurring revenue growth, continued margin expansion, and 14% adjusted EPS growth," said CEO Tim Gokey.
Furthermore, he sees the company well positioned to achieve its three-year financial objectives, with recurring revenue and adjusted EPS growth at or above the higher end of the range.
The company's board declared a quarterly dividend of $0.725 per share payable on Oct. 5, 2022 to stockholders of record on Sept. 15, 2022. That's up from the $0.64 per share dividend paid in July.
Q4 adjusted EPS of $2.65 vs. $2.62 consensus, $1.93 in Q3 and $2.19 in Q4 2021.
Total revenue for the quarter ended June 30, 2022 rose 12% Y/Y to $1.72B. That beats the $1.66 consensus and also increased from $1.53B in the prior quarter.
Y/Y, Investor Communications Solutions revenue rose to $1.35B from $1.21B; Global Technology and Operations revenue increased to $381.7M from $324.4M.
Recurring fee revenue rose 15% to $1.19B, primarily driven by four points of net new business and eight points of internal growth, mostly in Investor Communications Solutions.
Adjusted operating income margin increased to 25.3% from 20.4% in Q3 and from 22.8% a year ago.
Conference call at 8:30 AM ET.
Earlier, Broadridge Financial Solutions ( BR ) reports Q4 earnings beat; initiates FY23 guidance
For further details see:
Broadridge FY23 guidance midpoint exceeds consensus after Q4 FY 22 earnings beat