BROADRIDGE FINANCIAL SERVICES INC. $24 - New York symbol BR

BROADRIDGE FINANCIAL SERVICES INC. $24 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 124.1 million; Market cap: $3.0 billion; Price-to-sales ratio: 1.3; Dividend yield: 2.7%; TSINetwork Rating: Average; www.broadridge.com) serves the investment industry in three areas: investor communications, securities processing and transaction clearing.

In its fiscal 2012 first quarter, Broadridge earned $19 million. That’s up 46.2% from $13 million a year earlier. Earnings per share rose 50.0%, to $0.15 from $0.10, on fewer shares outstanding. Revenue rose 13.1%, to $476.4 million from $421.4 million.

Recent acquisitions helped push up Broadridge’s latest results. In addition, it continues to do a good job of holding onto its clients. Broadridge has also outsourced its data centre operations to IBM under a contract that doesn’t expire until 2022. The company should save $25 million a year over the length of the deal.

Broadridge expects to earn between $1.50 and $1.60 a share in fiscal 2012. It trades at 15.2 times the midpoint of this range.

Broadridge is a buy.

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