Financial technology provider Broadridge (NYSE:BR) will be announcing earnings results this Tuesday morning. Here's what investors should know.
Broadridge beat analysts' revenue expectations last quarter, reporting revenues of $1.95 billion, up 7.8% year on year. It was a strong quarter for the company, with a beat of analysts' EPS estimates.
Is Broadridge a buy or sell going into earnings? Read our full analysis here, it's free for active Edge members.
This quarter, the market is expecting Broadridge's revenue to grow 4.8% year on year, slowing from the 6.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Broadridge has missed Wall Street's revenue estimates multiple times over the last two years.
Looking at Broadridge's peers in the data & business process services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. EXL delivered year-on-year revenue growth of 15.6%, beating analysts' expectations by 3.5%, and SS&C reported revenues up 10.3%, topping estimates by 2.1%. EXL traded up 17.9% following the results while SS&C was also up 10.4%.
Read our full analysis of EXL's results here and SS&C's results here.
There has been positive sentiment among investors in the data & business process services segment, with share prices up 2.6% on average over the last month. Broadridge is up 6.4% during the same time and is heading into earnings with an average analyst price target of $206.50 (compared to the current share price of $155.77).
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