Broadridge Ends Fiscal Year With Healthy Quarter and Outlook

Broadridge finished its fiscal year on a high note, which showcases its robust business model amid a more volatile macroeconomic environment. We are encouraged that Broadridge’s growth is coming from a multitude of factors. The core governance franchise remains strong despite a recently volatile market. Broadridge expects fiscal 2023 recurring revenue growth of 6%-9%, which implies $3.97 billion-$4.09 billion of revenue and compares favorably with our forecast of $3.94 billion. The firm’s outlook of adjusted EPS growth of 7%-11% implies adjusted EPS of $6.91-$7.17 and beat the FactSet consensus of $6.96 at the midpoint. We will maintain our narrow moat rating but expect to increase our fair value estimate by a single-digit percentage as we tweak our revenue forecasts higher.