Broadridge Financial reports 4 percent profit gain on demand for its services

Richard J. Daly is CEO of Lake Success-based

Richard J. Daly is CEO of Lake Success-based Broadridge Financial Solutions. Photo Credit: Bloomberg News, 2009

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Profit at Broadridge Financial Solutions Inc. rose 4 percent in the April-June period compared with a year earlier on higher demand for its services, which include processing investor documents and securities.

The Lake Success-based company Thursday reported a profit of $140 million for its fiscal fourth quarter, which ended June 30. It earned $135 million during the same period in 2013.

Sales for the quarter climbed 2 percent to $886 million, in part due to more business from mutual-funds giant Fidelity Investments.

In addition to its headquarters in Nassau County, Broadridge has factories in Edgewood in Suffolk County where about 1,500 people assemble and send to shareholders annual reports, proxy statements and other documents from public companies. They also tally shareholder votes and process securities transactions for banks and investment houses.

This work is increasingly done over the Internet as Broadridge customers seek to reduce printing and mailing costs. Broadridge has rolled out a number of services to meet these requirements.

For the full year ended June 30, the company reported a profit of $263 million, an increase of 24 percent from the previous year. Sales were up 5 percent to $2.6 billion, year over year.

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Broadridge chief executive Richard J. Daly said, "We continued to build our brand by executing on our growth strategy as we increased investments in the business, completed two tuck-in acquisitions, and introduced new solutions to address our clients' evolving business needs" in the 2014 fiscal year.

He estimated during a conference call with stock analysts that Broadridge's sales would grow 4 percent to 6 percent in fiscal 2015. He also said the company had closed a deal last month "with a major global bank" to provide services valued at more than $5 million per year.

"I view the current market conditions as a slight breeze at our backs versus a steady tail wind," Daly said.

Broadridge released its earnings report before the stock market opened Thursday. The company's shares closed down 76 cents, or about 2 percent, to $39.88 on the New York Stock Exchange.

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