NYSE$BR
Broadridge Financial Solutions · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
Broadridge experienced a mixed quarter with recurring revenues rising and event-driven activity declining.
Broadridge's second quarter saw a 2% increase in total revenues, driven by a 7% rise in recurring fee revenues. However, a 36% decline in event-driven fee revenues led to a decrease in operating income and adjusted EPS. The company reaffirms its fiscal year 2020 revenue and closed sales guidance, with adjusted EPS expected to be at the low end of the range.
- Recurring fee revenues increased by 7% to $648 million.
- Event-driven fee revenues decreased by 36% due to lower mutual fund proxy activity.
- Closed sales were $45 million compared to $106 million in the prior year period.
- Broadridge reaffirms fiscal year 2020 revenue and closed sales guidance with adjusted EPS at the low end of the range.
Headline financials
Revenue & EPS history
Broadridge · Revenue · Quarterly
$969M
Revenue by segment
Broadridge · $997M total across 2 segments · Q2 2020
- Investor Comms Solutions$716M—71.8%
- Global Tech & Ops$281M—28.2%
Forward guidance
Broadridge reaffirms fiscal year 2020 revenue and closed sales guidance, with adjusted EPS expected to be at the low end of the range.
Tailwinds
- Recurring fee revenue growth of 8-10%.
- Total revenue growth of 3-6%.
- Adjusted Operating income margin ~18%.
- Adjusted earnings per share growth of 8-12% (expected to be at low end of range).
- Closed sales of $190-230M.
Headwinds
- GAAP Operating income margin ~14% (reduced from ~15%).
- Diluted earnings per share growth (4)-0% (reduced from 5-9%).
- Decrease in event-driven fee revenues.
- Higher acquisition amortization expense.
- Charges associated with the IBM Private Cloud Agreement.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2020
-0.4%
Avg return
Earnings day
-0.0%
Avg return
5 days after
+1.8%
Avg return
30 days after
49%
33 / 67 earnings
Positive
+11.4%
Q4 2018
Best reaction
-10.5%
Q1 2023
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q3 2026 | -4.1% | -5.4% | -4.5% | |
| Q2 2026 | -6.0% | -8.3% | -3.8% | |
| Q1 2026 | +0.7% | +0.2% | +4.4% | |
| Q3 2025 | -5.9% | -3.6% | +0.2% | |
| Q2 2025 | -0.4% | +0.4% | +0.9% | |
| Q1 2025 | +4.7% | +7.4% | +12.5% | |
| Q4 2024 | +1.6% | +2.9% | +1.1% | |
| Q3 2024 | -4.1% | -1.8% | -1.6% | |
| Q2 2024 | -1.2% | -2.6% | -0.2% | |
| Q1 2024 | +3.9% | +3.7% | +14.6% | |
| Q4 2023 | +7.5% | +9.5% | +12.6% | |
| Q3 2023 | +7.6% | +6.0% | +3.3% | |
| Q2 2023 | +0.1% | -1.8% | -6.0% | |
| Q1 2023 | -10.5% | -9.4% | -0.4% | |
| Q4 2022 | +5.0% | +4.7% | +1.6% | |
| Q3 2022 | +4.3% | -1.0% | +3.1% | |
| Q2 2022 | -3.1% | -5.9% | -8.1% | |
| Q1 2022 | -4.2% | -2.1% | -4.6% | |
| Q4 2021 | +1.3% | +2.7% | -1.3% | |
| Q3 2021 | +3.2% | +2.6% | -0.9% | |
| Q2 2021 | -1.0% | -1.3% | -4.7% | |
| Q1 2021 | +1.9% | +4.9% | +6.7% | |
| Q4 2020 | +1.8% | +1.7% | -2.0% | |
| Q3 2020 | +2.2% | -2.2% | +8.6% | |
| Q2 2020 | -10.1% | -6.8% | -19.4% | |
| Q1 2020 | -2.4% | -3.9% | -0.3% | |
| Q4 2019 | +0.5% | -3.2% | +1.8% | |
| Q3 2019 | -1.9% | +1.0% | +8.7% | |
| Q2 2019 | -5.8% | -4.0% | -4.4% | |
| Q1 2019 | -6.8% | -8.0% | -13.6% | |
| Q4 2018 | +11.4% | +11.3% | +17.9% | |
| Q3 2018 | +5.0% | +8.4% | +9.5% | |
| Q2 2018 | +0.6% | +4.2% | +18.2% | |
| Q1 2018 | +0.5% | +0.2% | +2.5% | |
| Q4 2017 | -0.5% | +1.9% | +5.9% | |
| Q3 2017 | +3.6% | +5.4% | +8.6% | |
| Q2 2017 | -1.9% | -0.9% | +0.0% | |
| Q1 2017 | -7.6% | -7.8% | +0.1% | |
| Q4 2016 | +1.5% | -0.0% | +3.7% | |
| Q3 2016 | +1.1% | — | — | |
| Q2 2016 | -2.8% | — | — | |
| Q1 2016 | -3.0% | — | — | |
| Q4 2015 | +5.6% | — | — | |
| Q3 2015 | -5.3% | — | — | |
| Q2 2015 | +4.0% | — | — | |
| Q1 2015 | +0.0% | — | — | |
| Q4 2014 | +2.0% | — | — | |
| Q3 2014 | -0.3% | — | — | |
| Q2 2014 | +4.6% | — | — | |
| Q1 2014 | +4.6% | — | — | |
| Q4 2013 | +7.8% | — | — | |
| Q3 2013 | +3.4% | — | — | |
| Q2 2013 | -6.7% | — | — | |
| Q1 2013 | -5.3% | — | — | |
| Q4 2012 | +3.9% | — | — | |
| Q3 2012 | -3.6% | — | — | |
| Q2 2012 | -1.4% | — | — | |
| Q1 2012 | +1.8% | — | — | |
| Q4 2009 | +1.9% | — | — | |
| Q4 2011 | +1.9% | — | — | |
| Q3 2010 | -3.6% | — | — | |
| Q3 2011 | -3.6% | — | — | |
| Q2 2010 | -6.9% | — | — | |
| Q2 2011 | -6.9% | — | — | |
| Q4 2010 | -2.8% | — | — | |
| Q1 2010 | -2.8% | — | — | |
| Q1 2011 | -2.8% | — | — |
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