Broadridge Financial Solutions Inc. saw its profit drop 20 percent in the October-December period compared with a year earlier because fewer documents needed to be sent to shareholders of mutual funds and public companies embroiled in proxy fights, executives said Thursday.
The Lake Success-based distributor of annual reports, proxy statements and other information to shareholders on behalf of public companies, mutual funds and other financial institutions reported a profit of $50 million for the fiscal second quarter compared with $62 million in 2017.
Revenue for the final three months of 2018 totaled $953 million, down 6 percent from October-December 2017.
“As anticipated, event-driven revenues declined significantly, returning to more normalized levels from a near-record quarter a year ago,” Broadridge CEO Tim Gokey said in a statement Thursday.
Still, he said, the company “generated strong increases in recurring revenue, record closed sales and earnings in line with our expectations, all of which further strengthen our ability to deliver future growth.”
Gokey noted the second half of Broadridge’s fiscal year, January through June, is always stronger financially and the company is “on track” to meet projected increases in profit and revenue.
Gokey recently succeeded founding CEO Richard J. Daly after holding other key jobs at Broadridge. Gokey had joined the company in 2010, coming from tax preparer H&R Block.
Besides its Lake Success headquarters, Broadridge has multiple facilities in Edgewood, where more than 2,000 people work.
The earnings announcement came before the stock market opened. Broadridge shares closed at $96.89, down 6.42 percent.