Smooth Sailing for Broadridge as Macroeconomic Uncertainty Has Little Effect

Broadridge reported a solid fiscal third quarter. Revenue of $1.53 billion was essentially in line with the FactSet consensus estimate of $1.54 billion and adjusted earnings per share of $1.93 beat consensus by $0.15 as operating expenses were lower than consensus expectations. Broadridge did nudge its adjusted EPS outlook higher but left its other guidance unchanged. Overall, there was little in the earnings release that would alter our long-term view of the firm, and we will maintain our narrow moat rating and $175 fair value estimate.