Broadridge reports record Q1 profit because of new customers
Broadridge employees at their Edgewood investor communications facility in 2018. The Lake Success-based company reported a profit of $66 million for the three months ended Sept. 30. Credit: Johnny Milano
Broadridge Financial Solutions Inc. saw its profit increase 18% in the July-September period compared with a year ago, in part because of new customers, executives said Friday.
The Lake Success-based distributor of proxy statements, annual reports and other investor documents reported a profit of $66 million for the three months ended Sept. 30 compared with $56 million in the same period in 2019.
Revenue in the quarter totaled $1 billion, a 7% increase, year over year.
CEO Timothy C. Gokey said the three-month profit set a record for Broadridge. The July-September period is the first quarter of the company's 2021 fiscal year.
"This positive start to the fiscal year gives us additional confidence in our full-year guidance" to investors of profit and revenue for 2020-21, he said. The financial results "enable us to increase our level of investment in our people, platforms and technology."
Broadridge is Long Island’s second-largest public company based on revenue. It employs about 2,300 people locally, many of them at large factories in Edgewood.
Gokey said Friday the company took "strong cost actions" in the quarter to grow its profits, including ending leases on some offices. None of the affected offices are on the Island and no employees were laid off.
Broadridge spent about $3 million in July-September on personal protective equipment and "enhanced cleaning measures in our facilities" to combat the coronavirus, the company said in a securities filing.
Broadridge delivers billions of documents to shareholders of public companies and investment funds each year and processes trillions of dollars in stock trades each day.
Broadridge shares closed down 52 cents, or less than 1%, to $137.60 on the New York Stock Exchange on Friday.
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.
Updated now Newsday travel writer Scott Vogel took the ferry over to Block Island for a weekend of fun.
Updated now Newsday travel writer Scott Vogel took the ferry over to Block Island for a weekend of fun.
