Broadridge Financial reports 106% increase in profits
One of Broadridge Financial Solutions' three plants in Edgewood seen on May 9, 2012. Credit: Newsday/Alejandra Villa
Broadridge Financial Solutions Inc. announced Thursday its profit rose 106 percent in the October-December period compared with a year earlier on increased demand by public companies for communications services to investors.
The Lake Success-based company reported a profit of $62 million in the final three months of 2017 compared with $30 million in 2016.
Revenue for the quarter totaled $1 billion, a 13 percent increase year over year.
“We benefited again from an elevated level of event-driven activity,” said Broadridge CEO Richard J. Daly, referring to decisions by public companies and mutual funds that require shareholder votes.
Broadridge delivers proxy statements, annual reports and other documents to investors on behalf of public companies and investment funds. It also tabulates shareholder votes and processes transactions for investment banks.
“The quality of our dialogues with key clients remains very high, which we believe positions us well for future growth,” Daly said in a statement.
Broadridge also said Thursday that it took a charge of $16 million in the October-December period because of changes in federal tax law related to returning profits from foreign operations to the United States and having to pay tax on them.
Still, executives said the company would benefit in the long term from the Tax Cuts and Jobs Act of 2017 because it cuts the corporate tax rate to 21 percent from 35 percent.
On Wednesday, Daly announced plans to boost employee wages, pay bonuses and expand employee benefits because of the tax law and Broadridge’s strong financial performance. It is the largest company on Long Island so far to announce employee rewards tied to the tax changes.
The earnings announcement came before the stock market opened. Broadridge shares closed down 1.1 percent, to $90.74 on the New York Stock Exchange.
James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.
