Overcast 33° Good Evening
Overcast 33° Good Evening

Broadridge Financial earnings surge 75 percent

"I am very pleased with our second quarter," said chief executive Richard J. Daly of the strong numbers his company, Broadridge Financial Solutions, has turned in. On March 29, 2011, Daly visited the National Press Club in Washington, D.C. Photo Credit: Sam Hurd

Broadridge Financial Solutions Inc. Thursday reported a 75 percent increase in profit for the October-to-December period on greater demand for its shareholder communication services.

The Lake Success-based processor of investor documents, votes and financial transactions said it earned $28 million in the second quarter of its 2014 fiscal year, compared with $16 million in the same period a year ago.

Sales rose 6 percent, year over year, to $521 million in the three months ended Dec. 31.

"We are off to a great start to the fiscal year," chief executive Richard J. Daly told stock analysts during a conference call. "Broadridge's revenue model is very stable; providing backbone support to Wall Street never goes away."

He also said Broadridge would continue to purchase complementary businesses that can be folded into its operations. A small acquisition occurred last summer, and Daly said Thursday, "I would be disappointed if we are not able to close an additional tuck-in transaction in 2014."

Broadridge is Long Island's seventh-largest public company based on sales. It employs about 2,000 people, primarily in processing centers in Edgewood and Brentwood.

Daly said Broadridge had raised estimates for its full-year financial performance. It now expects to report earnings per share of $2.15 to $2.25, an increase of 15 cents per share from August's estimate. Sales are anticipated to climb 4 percent to 5 percent, a gain over the earlier estimate of 2 percent to 4 percent.

The earnings report was released before stock markets opened. Broadridge shares closed up 58 cents, or 1.63 percent, to $36.12 per share in New York Stock Exchange trading Thursday.

Daly, in the conference call, lauded the 30-year service of veteran chief financial officer Dan Sheldon, who said Wednesday he was stepping down after returning briefly to work from medical leave.

More news

Sorry to interrupt...

Your first 5 are free

Access to Newsday is free for Optimum customers.

Please enjoy 5 complimentary views to articles, photos, and videos during the next 30 days.