- Broadridge Financial Solutions Inc (NYSE:BR) reported fourth-quarter FY21 revenue growth of 12% to $1.53 billion, beating the analyst consensus of $1.47 billion. Recurring fee revenues increased 15% Y/Y to $1.07 billion.
- ICS revenues increased 12% Y/Y to $1.22 billion, with the Recurring fee revenues rising 17% Y/Y to $719 million.
- ICS Distribution revenues increased 5% Y/Y to $429 million, driven by increased customer communications volume. ICS pre-tax margin expanded ten bps to 23.9% from higher Recurring fee revenues and Event-driven fee revenues.
- GTO recurring fee revenues increased 10% Y/Y to $346 million, and the segment’s pre-tax margin contracted 1,400 bps to 9% due to higher acquisition-related amortization, other costs, and growth initiative spending.
- Overall adjusted operating margin contracted 180 bps to 22.8% due to higher spend on growth initiatives.
- Adjusted EPS of $2.19 was at par with the analyst consensus.
- Broadridge held $274.5 million in cash and equivalents and generated $640.1 million in operating cash flow during FY21.
- Broadridge raised the annual dividend by 11% to $2.56.
- Outlook: Broadridge sees FY22 recurring revenue growth between 12%-15% and sees an adjusted operating margin of 19%.
- It expects adjusted EPS growth of 11%-15% above the analyst consensus of $6.26.
- Price Action: BR shares closed higher by 0.45% at $172.90 on the last check Thursday.
JP Morgan Initiates Coverage On Procore Technologies with Overweight Rating, Announces Price Target of $115
JP Morgan analyst Sterling Auty initiates coverage on Procore Technologies (NYSE:PCOR) with a Overweight rating and announces Price Target of $115.
