37° Good Evening
37° Good Evening

Broadridge Financial posts 48 percent increase in profits

Lake Success-based Broadridge Financial Solutions Inc. in an

Lake Success-based Broadridge Financial Solutions Inc. in an undated photo. Credit: Newsday / Alejandra Villa

Broadridge Financial Solutions Inc. posted a 48 percent increase in profit for the July-September period compared with a year ago, on increased demand for its investor communications services, executives said Wednesday.

The Lake Success-based company, which distributes proxy statements, annual reports and other documents to shareholders on behalf of public companies, mutual funds and banks, reported a profit of $50 million in the three months ended Sept. 30, up from $34 million for the same period in 2016.

Revenue rose 3 percent in the quarter to $925 million, year over year.

The increase was due in part to more proxy contests and shareholder votes at public companies and mutual funds. Broadridge delivers documents to investors and then tallies the votes.

A proxy contest at home goods manufacturer Procter & Gamble “was a significant contributor to this growth,” CEO Richard J. Daly said in a teleconference with stock analysts on Wednesday.

Revenue tied to proxy contests and other events rose 58 percent to $59 million, year over year.

Daly said financial results for the July-September period, which is the first quarter of the company’s fiscal 2018 year, showed “we are on track .<EN>.<EN>. and well positioned for future growth.”

Peter Heckmann, a stock analyst who follows Broadridge for the Montana-based brokerage D.A. Davidson & Co., predicted in a note to investors that Broadridge will continue a string of small acquisitions begun in December 2014. It has made nearly 25 purchases and will “likely do more,” he wrote.

In addition to its Lake Success headquarters, Broadridge has a large processing center in Edgewood, where about 2,000 people work.

Broadridge shares on Wednesday closed up $3.09, or more than 3 percent, to $90.48 on the New York Stock Exchange.

More news