Broadridge Financial Solutions, Inc. (NYSE:BR) today reported financial results for the third quarter ended March 31, 2024 of its fiscal year 2024.

Total revenues increased 5% to $1,726 million from $1,646 million from the year-ago period.

Recurring revenues increased $44 million, or 4%, to $1,126 million. Recurring revenue growth constant currency (Non-GAAP) was 4%, all organic, driven by Net New Business and Internal Growth.

Event-driven revenues increased $15 million, or 29%, to $67 million, driven by equity proxy contests in the quarter.

Distribution revenues increased $21 million, or 4%, to $533 million, thanks to the postage rate increase of approximately $30 million offset by lower communications volumes.

Operating income was $303 million, an increase of $16 million, or 6%. Operating income margin increased to 17.5%, compared to 17.4% for the prior year period, primarily due to higher Recurring revenues and higher event-driven revenues.

Adjusted Operating income was $370 million, an increase of $25 million, or 7%. Adjusted Operating income margin was 21.4% compared to 21.0% for the prior year period. The combination of higher distribution revenue and higher float income had a net benefit of 20 basis points.

Interest expense, net was $35 million, a decrease of $3 million, primarily due to a decrease in average borrowings, partially offset by an increase in interest expense from higher borrowing costs.

The effective tax rate was 19.8% compared to 20.6% in the prior year period. The effective tax rate for the three months ended March 31, 2024 was primarily driven by a higher excess tax benefit related to equity compensation, relative to pre-tax income, as compared to the prior year period.

Net earnings increased 8% to $214 million and Adjusted Net earnings increased 9% to $267 million.

Diluted earnings per share increased 7% to $1.79, compared to $1.67 in the prior year period, and

Adjusted earnings per share increased 9% to $2.23, compared to $2.05 in the prior year period.

Tim Gokey, Broadridge CEO, commented:

“Entering our fourth quarter, Broadridge is poised to deliver another year of steady and consistent growth. For fiscal 2024, we expect Recurring revenue growth constant currency at the low end of our 6-9% guidance range and are reaffirming our outlook for Adjusted EPS growth at the middle of our 8-12% range, as well as record Closed sales of $280-320 million. We also expect to deliver on our full year objective of 100% free flow conversion, positioning Broadridge to return additional capital to shareholders while funding tuck-in M&A.”