Why Broadridge Financial Shares Are Diving Today
Portfolio Pulse from Lekha Gupta
Broadridge Financial Solutions Inc (NYSE:BR) shares fell after reporting Q3 FY24 results with revenue of $1.726 billion, missing the consensus of $1.767 billion. Adjusted EPS was $2.23, below the expected $2.24. The company sees FY24 adjusted recurring revenue growth at the low end of the 6%-9% guidance and maintains its adjusted operating margin outlook at around 20%. CEO Tim Gokey highlighted a 29% increase in closed sales and the company's strong position for long-term growth. BR shares are down 5.7% to $189.84. Exposure to BR can also be gained through Motley Fool Mid-Cap Growth ETF (BATS:TMFM) and Bahl & Gaynor Small/Mid Cap Income Growth ETF (NYSE:SMIG).
May 08, 2024 | 3:05 pm
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NEGATIVE IMPACT
Broadridge Financial Solutions Inc reported lower than expected Q3 FY24 results, with a revenue miss and a slight EPS miss, leading to a 5.7% drop in share price.
The direct impact on BR's stock price is evident from the 5.7% drop following the earnings miss. The short-term sentiment is likely negative due to the revenue and EPS miss, despite the company's positive outlook on long-term growth.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Bahl & Gaynor Small/Mid Cap Income Growth ETF, holding BR shares, could face indirect negative impact from Broadridge's reported earnings miss.
SMIG, with BR in its portfolio, may see a slight negative impact due to the earnings miss by Broadridge. The overall effect is expected to be minor, reflecting the diversified nature of the ETF.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Motley Fool Mid-Cap Growth ETF, which includes exposure to BR, may see indirect impact due to Broadridge's earnings miss and subsequent share price decline.
Given TMFM's exposure to BR, the ETF might experience some negative impact due to Broadridge's performance, although the effect is likely to be diluted across the ETF's diversified portfolio.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50