The analysts wrote, “Last week, BR dissipated some of its Penson client overhang risk by ending its Penson contract and replacing it with a new outsourcing deal with Apex Clearing (formed by Penson and PEAK6). We note that BR will be paid on a percentage of revenue basis with no minimums, so it will be tied to the success of Apex, which remains unclear at this time. We suspect the deal will result in lower revenues than the prior deal ($50M annual revenue minimum or $0.12 in EPS) so we are cutting the contract by one third, resulting in a $17M/$0.04 cut to our FY13 estimates. While disappointing, and BR is not out of woods yet as Apex’s success is unclear, the outcome could have been far worse as we were prepared to see the contract turn up empty in a bad case.”
Shares of Broadridge Financial Solutions opened at 20.31 on Tuesday. Broadridge Financial Solutions has a one year low of $19.01 and a one year high of $24.94. The company has a market cap of $2.537 billion and a P/E ratio of 16.49.
Broadridge Financial Solutions last issued its quarterly earnings data on Tuesday, May 8th. The company reported $0.28 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.25 by $0.03. Broadridge Financial Solutions’s revenue was up 3.8% compared to the same quarter last year. On average, analysts predict that Broadridge Financial Solutions will post $0.19 earnings per share next quarter.
Broadridge Financial Solutions, Inc. (Broadridge) is a global provider of technology solutions to the financial services industry.