Lake Success, New York-based Broadridge Financial Solutions, Inc. (BR) provides investor communications and technology-driven solutions for the financial services industry. With a market cap of $26.9 billion, Broadridge operates through Investor Communication Solutions (ICS), Global Technology and Operations (GTO), and other segments.

Broadridge Financial is set to unveil its second-quarter results before the market opens on Friday, Jan. 31. Ahead of the event, analysts expect BR to report a non-GAAP profit of $1.39 per share, up a staggering 51.1% from $0.92 per share reported in the year-ago quarter. Furthermore, the company has matched or surpassed analysts’ earnings expectations in each of the past four quarters. Its adjusted EPS for the last reported quarter dipped 8.3% year-over-year to $1.00 while matching Wall Street’s expectations.

For fiscal 2025, Broadridge is expected to deliver an adjusted EPS of $8.53, up 10.4% from $7.73 in fiscal 2024. While in fiscal 2026, its earnings are expected to increase 9.5% year-over-year to $9.34 per share.

BR stock prices have gained 14.1% over the past 52 weeks, lagging behind the S&P 500 Index’s ($SPX) 26.5% surge and the Technology Select Sector SPDR Fund’s (XLK) 22.1% returns during the same time frame.

Broadridge’s stock prices surged 4.1% after the release of its Q1 results on Nov. 5. The company has continued to observe growth in its recurring revenue. Driven by net new business in ICS and internal growth in the GTO segment, its recurring revenues increased 3% year-over-year to $900 million. Observing this momentum, Broadridge raised its full-year constant currency recurring revenue growth guidance from previously announced 5% - 7% to 6% - 8%.

However, due to lower corporate action activity and the lower volume of mutual fund proxy communications and event-driven mailings, its event-driven revenues and distribution revenues took a hit. This resulted in a 57-basis point decline in total revenues to $1.4 billion. Meanwhile, due to higher expenses, its net earnings declined 12.2% year-over-year to $79.8 million.

Analysts remain cautious about the stock’s prospects. The stock has a consensus “Hold” rating overall. Among the seven analysts covering the stock, two recommend “Moderate Buy” and five suggest a “Hold” rating. Its mean price target of $231.17 represents a marginal upside from current price levels.