Broadridge Financial Solutions Clocks 3% Revenue Growth In Q2 Due To Market Softness; Reaffirms FY23 Guidance

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.