Broadridge (BR) To Report Q2 Earnings: What's In The Cards?

Broadridge Financial Solutions Inc. (NYSE:BR) is set to report second-quarter fiscal 2020 results on Jan 31, before the bell.

The company’s shares have gained 28.7% over the past year compared with 26.7% growth of the industry it belongs to.

What to Expect This Time

The Zacks Consensus Estimate for revenues is pegged at $994.4 million, indicating an increase of 4.3% from the year-ago quarter’s reported figure. Higher Global Technology and Operations ("GTO") segment revenues, driven by acquisitions and organic growth, are likely to have benefited the top line. The consensus mark for GTO revenues is pegged at $284 million, indicating 19.8% year-over-year growth. In the first quarter of fiscal 2020, Broadridge’s total revenues of $949 million decreased 2% year over year.

Broadridge Financial Solutions, Inc. Revenue (TTM)

Higher organic and inorganic revenues are expected to have driven earnings, the consensus mark for which is pegged at 76 cents, indicating a year-over-year increase of 35.7%. In the first quarter of fiscal 2020, adjusted earnings of 68 cents per share were down 2% on a year-over-year basis.

What Our Model Says

Our proven Zacks model does not conclusively predict an earnings beat for Broadridge this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Broadridge has an Earnings ESP of 0.00% and a Zacks Rank #2.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings this season:

Waste Management (NYSE:WM) has an Earnings ESP of +4.19% and a Zacks Rank #2. The company is slated to report results on Feb 13. You can see the complete list of today’s Zacks #1 Rank stocks here.

S&P Global (NYSE:SPGI) has an Earnings ESP of +0.49% and a Zacks Rank #2. The company is slated to report results on Feb 6.

Fidelity National Information Services, Inc. (NYSE:FIS) has an Earnings ESP of +0.45% and a Zacks Rank #2. The company is slated to release results on Feb 13.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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