Broadridge Financial Posts Mixed Q4 Earnings, Raises Annual Dividend By 10%

Broadridge Financial Solutions Inc BR reported a Q4 FY23 revenue growth of 7% to $1.84 billion, missing the consensus of $1.89 billion.

Recurring revenues increased 7% Y/Y to $1.26 billion, and Distribution revenues rose 9% Y/Y to $522 million. 

Event segment revenues fell 15% Y/Y to $59 million in the quarter.

Adjusted operating income rose 22% Y/Y to $531 million, with margin expanded to 28.9% from 25.3% a year ago.

Adjusted EPS of $3.21 (+21% Y/Y) beat the consensus of $3.10.

As of June 30, 2023, Broadridge held $252.3 million in cash and equivalents.

Dividend: Broadridge's Board of Directors declared a quarterly dividend per share of $0.80, payable on October 5, 2023, to stockholders of record as on September 15, 2023. 

This reflects an annual dividend per share increase of 10% to $3.20 from $2.90.

FY24 Outlook: Broadridge expects adjusted recurring revenue growth of 6% - 9%, adjusted operating margin of around 20%, and adjusted EPS growth of 8% - 12% Y/Y.

Price Action: BR shares are trading higher by 4.86% at $174.23 on the last check Tuesday.