Broadridge Financial Solutions Q1 Results Top Estimates; Backs FY14 Outlook

(RTTNews) - Broadridge Financial Solutions Inc.'s (BR) GAAP net earnings for the first quarter of fiscal year 2014 was $44 million up 143% from $18 million for the same period last year, primarily due to higher revenues and increased Pre-tax margins driven by revenue mix. GAAP earnings per share increased to $0.36 per share, compared to $0.14 per share in the first quarter of fiscal year 2013.

Acquisition Amortization and Other Costs decreased its GAAP earnings per share by $0.03, for both the three months ended September 30, 2013 and 2012.

Non-GAAP net earnings were $48 million compared to $22 million for the same period last year. Non-GAAP earnings per share were $0.39 compared to $0.18 per share for the same period last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.20 per share for the quarter. Analysts' estimates typically exclude special items.

Pre-tax loss decreased by $4 million in the first quarter of fiscal year 2014, primarily due to a decrease in the fair value of its obligations under contingent acquisition consideration arrangements, and a decrease resulting from fluctuations in foreign currency exchange rates, which was slightly offset by higher interest expense on its Long-term borrowings.

Quarterly revenues increased 10% to $545 million, compared to $496 million for the comparable period last year. Six analysts estimated revenues of $512.86 million for the quarter.

The increase was driven by a positive contribution from recurring fee revenues of approximately $33 million including Net New Business, higher distribution revenues of $10 million and higher event-driven fee revenues of $8 million.

The company reaffirmed its fiscal year 2014 financial Guidance. The company still anticipates recurring revenue growth in the range of 5% to 7% and total revenue growth in the range of 2% to 4%. The company still expects GAAP earnings per share in the range of $1.89 to $1.99, and Non-GAAP earnings per share in the range of $2.00 to $2.10.

Street currently is looking for full-year 2014 earnings of $2.05 per share on annual revenues of $2.51 billion.