-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
BR reported Mar-Q results above expectations, with revenues of $1.95B (+8% Y/Y) beating consensus by $50M. Adjusted EPS of $2.72, compared to $2.44 in the prior year, exceeded estimates by $0.12. Recurring revenue grew 7% to $1.29B, driven by strong performance in regulatory services (+9%) and a 38% surge in event-driven revenues to $73M from higher mutual fund proxy activity. Margin pressures and declining closed sales present near-term headwinds to profitability. Management noted that higher distribution revenue and increased float income negatively impacted margins by 80 basis points, which reflects ongoing challenges with the revenue mix. Despite 4% growth in operating income to $421M, adjusted operating margins declined to 21.5% from 22.4%. Closed sales fell 19% to $58M. The Investor Communication Solutions segment delivered revenues of $1.47B (+9%); however, the Global Technology and Operations segment showed more moderate growth, with recurring revenues up 5% to $488M.