Benzinga | May 4, 2021 08:30AM EDT

Broadridge Beats On Q3 Earnings, Raises FY21 Guidance

* Broadridge Financial Solutions Inc (NYSE: BR) reported third-quarter FY21 revenue growth of 11% year-on-year to $1.39 billion, beating analyst consensus of $1.28 billion.

* Recurring fee revenues rose 8% to $900 million as growth from onboarding of new business, and internal growth drove the results.

* Event-driven fee revenues grew 89% to $74 million from higher mutual fund proxy activity, contests, and other communications. In comparison, Distribution revenues rose 9% to $449 million from the higher volume of event-driven communications.

* Investor Communication Solutions (ICS) revenue rose 13% to $1.109 billion from higher recurring fee revenue, event-driven revenue, and distribution revenue. Global Technology and Operations (GTO) revenue rose 3% to $314 million from net new business.

* Non-GAAP operating margin contracted 60 basis points to 20.4%.

* Non-GAAP EPS of $1.76 beat the analyst consensus of $1.68.

* The company held $355.8 million in cash and equivalents, and it generated $189.5 million in operating cash flow.

* Guidance: Broadridge raised FY21 recurring revenue growth guidance from the previous range of 3% - 6% to 8% - 10%. The adjusted EPS growth guidance was raised from the previous 6% - 10% to 11% - 13%.

* The results continue to be propelled by increased digitization, mutualization, and the democratization of investing, leading to continuous investment in products and technology platforms, stated CEO Tim Gokey.

* Price action: BR shares closed higher by 0.86% at $159.98 on Monday.