Broadridge Financial Solutions reports 54% gain in net income

Broadridge Financial Solutions Inc., a provider of investor communications and technology used by financial institutions, Tuesday reported sharply higher first quarter profit driven by lower taxes and growth in ongoing businesses.

Net income increased 54 percent from the year-earlier period to $77 million, or 64 cents per diluted share.

Revenue in the quarter ended Sept. 30 increased 5 percent to $973 million.

Revenue missed consensus analyst estimates compiled by Zacks, driving the stock down  in afternoon trading; it closed down 9.7 percent to $105.27.

The company's effective tax rate in the first quarter was 14.1 percent compared to 32.8 percent in the previous year's period, primarily because of the federal Tax Cuts and Jobs Act.

"We continue to see strong demand for Broadridge's technology solutions," said Broadridge chief executive Rich Daly, who is stepping down from that role on Jan. 2 but will continue as executive chairman of the board.

The Lake Success company, the second largest Long Island public company based on 2017 revenue, also reported a 30 percent increase to $77 million in "event-driven fee revenues" such as mutual fund proxy activity.

Daly will be succeeded by Broadridge president and chief operating office Tim Gokey.

By Ken Schachter

kenneth.schachter@newsday.comkschach

Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.