Broadridge Financial Solutions, Inc. (NYSE: BR) published its financials for the second quarter of fiscal 2023, reporting a 3 percent yearly rise in total revenue to about $1.3 billion. In addition, the recurring revenue increased by 6 percent to $840 million.

Broadridge Posts Healthy Q2 Results

Broadridge categorizes its business into two broad areas: investor communication solutions (ICS) and global technology and operations (GTO). The company's revenue from ICS alone came in at $919 million, which is a yearly jump of 3 percent while GTO witnessed a 2 percent jump with a revenue of $373 million.

The operating income increased by 57 percent to $108 million, as the margin also improved to 8.3 percent from 5.5 percent. The company's adjusted operating income increased from $141 million to $$173 million, which is a rise of 23 percent.

With this, Broadridge closed the quarter with diluted earnings per share (EPS) at $0.48, rising 20 percent, while the adjusted EPS stood 11 percent higher at $0.91.

"Broadridge delivered strong results in the second quarter," said the Chief Executive at Broadridge, Tim Gokey. "We continue to see growth driven by conversion of sales backlog into new revenue and strength in investor participation."

For the last six months, the company has witnessed $2.57 billion in revenue, showing an increase of 5 percent. Operating income for the period came in at $195 million, with a 7.6 percent margin. However, the diluted and adjusted EPS dropped by 6 and 7 percent, respectively.

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Bullish Outlook

With these figures, the company expects to close fiscal 2023 with 6 to 9 percent recurring revenue growth. In addition, it is expecting the diluted EPS to rise anywhere between 13 to 17 percent and adjusted EPS between 7 and 11 percent.

"The strength of our results and the resilience of our business keep us on track to deliver on our full-year guidance, including 6-9% Recurring revenue growth constant currency and 7-11% Adjusted EPS growth. As a result, we continue to expect to deliver at or above the higher end of our three-year financial objectives, including 7-9% Recurring revenue and 8-12% Adjusted EPS growth," Gokey added.

Meanwhile, Broadridge is partnering with other platforms to enhance its offerings. Over the recent months, it tapped IntraFi and Glue42 to improve services. Furthermore, it partnered with Coinbase to offer interoperability between Coinbase Prime and Broadridge Trading and Connectivity Solutions' NYFIX order-routing network.

Last month, Broadridge extended its partnership with IGM Financial, allowing further use of Broadridge's R.Broker solution. Meanwhile, eToro tapped the services of Broadridge to enable proxy voting services.