Broadridge Financial profit beats estimates on strength in global technology unit
Nov 5 (Reuters) -Fintech firm Broadridge Financial BR.N beat Wall Street estimates for first-quarter profit on Tuesday, helped by resilient demand in its global technology business.
WHY IT'S IMPORTANT
Broadridge provides investor communications and technology-driven services to banks, broker-dealers, asset managers and corporate issuers.
A highly anticipated interest rate cut and a healthy economy boosted clients' confidence, fueling demand for services that strengthen their digital infrastructure and helping companies such as Broadridge.
CONTEXT
The company's two mainstay businesses are investor communication solutions, which accounts for the majority of its revenue, and global technology and operations.
Investor communication solutions engages in distribution of proxy materials and other corporate communications.
The global technology and operations unit offers products including desktop productivity tools, portfolio management, cash management, clearance and settlement.
KEY QUOTE
"We are raising our fiscal year 2025 outlook for recurring revenue growth to 6%-8%, reflecting strong organic growth and our recently closed acquisition of SIS," said CEO Tim Gokey.
The company previously forecast 5% to 7% growth.
BY THE NUMBERS
Broadridge posted adjusted earnings per share of $1 for the three months ended Sept. 30, compared with analysts' average estimate of 97 cents, according to data compiled by LSEG.
The Lake Success, New York-based company's global technology and operations unit recorded revenue of $407.2 million in the quarter, up from $402.4 million a year ago.
Revenue at its investor communication solutions business fell nearly 1% to $1.02 billion.
The company's total revenue fell 1% to $1.42 billion.
Reporting by Prakhar Srivastava in Bengaluru; Editing by Shilpi Majumdar
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