- Broadridge Financial Solutions, Inc BR reported second-quarter FY23 revenue growth of 3% to $1.29 billion, missing the consensus of $1.35 billion.
- Recurring fee revenues increased 6% Y/Y to $840 million. Distribution revenues rose 3% Y/Y to $415 million.
- ICS segment total revenues increased 3% Y/Y to $919 million, and GTO recurring fee revenues increased 2% Y/Y to $373 million.
- The adjusted operating income margin expanded 220 bps to 13.4%.
- Adjusted EPS of $0.91 beat the consensus of $0.90.
- Broadridge held $280 million in cash and equivalents.
- "We continue to see growth driven by conversion of sales backlog into new revenue and strength in investor participation," CEO Tim Gokey said.
- FY23 Outlook: Long Island, New York-based Broadridge reaffirmed recurring revenue growth of 6% - 9% and non-GAAP EPS growth of 7% - 11% Y/Y (consensus $6.92).
- Price Action: BR shares traded lower by 1.55% at $151.00 premarket on the last check Thursday.
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