Broadridge Financial Solutions Inc. BR is scheduled to report fourth-quarter fiscal 2015 results on Aug 7. Last quarter, the company posted a negative earnings surprise of 9.62%.
Let us see how things are shaping up for this announcement.
Factors to Consider
Broadridge is a leading global provider of technology-based outsourcing solutions to the financial services industry. We are optimistic about the company’s strategic acquisitions, product launches, share repurchase program and dividend payouts, which are likely to positively impact Broadridge’s fourth-quarter results. We also believe that the company’s close association with Accenture ACN will be beneficial over the long term.
However, the pricing pressure caused by stiff competition from the likes of Barrett Business Services and DST Systems may impact profitability in the to-be-reported quarter.
Earnings Whispers
Our proven model does not conclusively show that Broadridge will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at earnings of $1.38 per share. Hence, the difference is 0.00%.
Zacks Rank: Broadridge currently has a Zacks Rank #4 (Sell).
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are a couple of companies which you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Amtech Systems Inc. ASYS, with an Earnings ESP of +8.00% and a Zacks Rank #3.
SunEdison Inc. SUNE, with an Earnings ESP of +13.33% and a Zacks Rank #3.
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