The Broadridge Financial Solutions, Inc. (NYSE:BR) Second-Quarter Results Are Out And Analysts Have Published New Forecasts

Broadridge Financial Solutions, Inc. (NYSE:BR) investors will be delighted, with the company turning in some strong numbers with its latest results. Results were good overall, with revenues beating analyst predictions by 2.1% to hit US$1.6b. Statutory earnings per share (EPS) came in at US$1.20, some 2.1% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Broadridge Financial Solutions

After the latest results, the nine analysts covering Broadridge Financial Solutions are now predicting revenues of US$6.96b in 2025. If met, this would reflect a credible 4.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 11% to US$7.19. In the lead-up to this report, the analysts had been modelling revenues of US$6.91b and earnings per share (EPS) of US$7.20 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$237. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Broadridge Financial Solutions analyst has a price target of US$260 per share, while the most pessimistic values it at US$208. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Broadridge Financial Solutions is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 8.3% growth on an annualised basis. That is in line with its 8.9% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.2% annually. So although Broadridge Financial Solutions is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$237, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Broadridge Financial Solutions analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Broadridge Financial Solutions , and understanding them should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.