Shares of Broadridge Financial Solutions (BR) plummeted 5.85% in pre-market trading on Thursday after the company reported mixed third-quarter fiscal 2025 results that fell short of revenue expectations despite beating earnings per share estimates.

The financial technology services provider reported total revenues of $1.81 billion for the quarter, up 5% year-over-year but below the analyst consensus estimate of $1.86 billion. While recurring revenues grew 7% to $1.2 billion, event-driven revenues declined 21% to $53 million due to lower equity proxy contest activity.

Despite the revenue miss, Broadridge's adjusted earnings per share of $2.44 surpassed the analyst estimate of $2.43, representing a 9% increase from the prior year. The company's operating income rose 14% to $345 million, with the operating margin improving to 19.0% from 17.5% in the previous year.

Investors appear to be focusing on the revenue shortfall and the decline in event-driven revenues, which overshadowed the earnings beat. The company's outlook for fiscal year 2025, while reaffirming 6-8% recurring revenue growth, also indicated adjusted EPS growth in the middle of the 8-12% range, which may have fallen short of more optimistic expectations.

Broadridge CEO Tim Gokey commented on the results, stating, "Our continued execution is being driven by the resilience of our business and powerful long-term trends." However, the market's reaction suggests concerns about the company's ability to meet top-line growth expectations in the current economic environment.