Broadridge (BR) Q3 earnings report preview: what to look for

Broadridge Financial Solutions, a prominent player in financial technology, is set to release its third-quarter earnings report this Tuesday morning before the market opens. Investors and analysts are keenly anticipating the results.

In the previous quarter, Broadridge exceeded analysts' expectations for revenue, generating $2.22 billion, which represented a year-over-year increase of 7.5%. The company also surpassed estimates for earnings per share (EPS), marking a solid performance.

As the company prepares for this earnings announcement, questions arise regarding whether Broadridge is a worthwhile investment or one to avoid. A comprehensive analysis of the company's prospects is available for active members of Edge.

For the upcoming quarter, analysts forecast a revenue growth of 3.2% compared to the same period last year, a notable slowdown from the 11.7% growth reported in the third quarter of the previous year. The consistency in analysts' estimates over the past month indicates a prevailing belief that Broadridge will maintain its performance despite previous instances of falling short of Wall Street's revenue projections multiple times over the last two years.

Insights from Broadridge's competitors in the data and business process services sector provide additional context. Several companies have already disclosed their third-quarter results, which may offer clues about Broadridge's performance. Notably, EXL Services reported a substantial year-over-year revenue increase of 19.7%, surpassing analysts' expectations by 3.2%. Meanwhile, CoStar Group posted a revenue rise of 14.1%, exceeding estimates by 0.6%. Following their results, EXL's stock remained stable, while CoStar's shares fell by 14%.

For investors in the data and business process services segment, market sentiment appears stable ahead of earnings reports, with an average increase of 1.3% in share prices over the past month. Broadridge's stock has performed particularly well, climbing 12.4% during the same timeframe. Currently, analysts have set an average price target of $208.63 for Broadridge, compared to its present share price of $178.86.

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