Broadridge Financial Solutions reports 4Q results
Broadridge Financial Solutions, seen on May 3, 2018. The company reported its fourth quarter earnings Thursday. Credit: Johnny Milano
Broadridge Financial Solutions Inc. reported Thursday that its profit dropped 11 percent in the April-June period compared with a year earlier because of less demand for its investor communications services and a 2018 accounting rule change.
The company, with its headquarters in Lake Success, said its profit totaled $183 million in the quarter ended June 30 compared with $207 million a year earlier.
Revenue for the three-month period totaled $1.2 billion, down 8 percent, year over year.
Broadridge delivers billions of documents to shareholders each year and processes trillions of dollars in stock trades each day. It has large processing facilities in Edgewood, where about 2,300 people work.
Executives said Thursday the company’s financial performance in the April-June quarter was impacted by fewer shareholder proxy fights and other corporate events compared with 2018.
They also said Broadridge’s adoption of a new accounting standard for reporting revenue from contracts with customers had depressed this year’s earnings compared with 2018.
Still, CEO Timothy C. Gokey said Broadridge “closed out the year on a very positive note as a strong fourth quarter powered another year of record closed sales, and we made three tuck-in acquisitions that will further strengthen our business.”
Broadridge disclosed Thursday that it spent $406 million to purchase RPM Technologies in Canada, Rockall Technologies Ltd. in Ireland, and the retirement plan custody and trust assets business of TD Ameritrade Holding Co.
The largest acquisition was RPM at $303 million. The software company in Toronto, Ontario, has 244 employees and its products are used in more than 15 million investment accounts in Canada. RPM’s customers include banks, credit unions, insurers and stock brokerages.
Gokey described the year ended June 30 as “strong” for Broadridge as the company “executed against our strategic goals. … We expect fiscal year 2020 to be another strong year.”
Broadridge reported a profit of $482 million in the 12 months ended June 30 compared with a profit of $428 million a year earlier, or a gain of 13 percent. Revenue totaled $4.4 million, up 1 percent, year over year.
The earnings announcement came before the stock market opened. In early trading, Broadridge shares were up $2.46, or nearly 2 percent, to $129.58 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.
Food, fun and fireworks: NewsdayTV's Fourth of July special NewsdayTV's Elisa DiStefano has your guide to Fourth of July fun across Long Island.
Top Stories
Food, fun and fireworks: NewsdayTV's Fourth of July special NewsdayTV's Elisa DiStefano has your guide to Fourth of July fun across Long Island.
