BROADRIDGE FINANCIAL SOLUTIONS $22.97 - New York symbol BR

BROADRIDGE FINANCIAL SOLUTIONS $22.97 (New York symbol BR: TSINetwork Rating: Extra Risk) (201-714-3000; www.broadridge.com; Shares outstanding: 122.2 million; Market cap: $2.8 billion; Dividend yield: 3.1%) serves the investment industry in three main areas: investor communications; securities processing; and transaction clearing. The company processes 85% of all proxy votes in the U.S.

Before one-time items, Broadridge’s earnings fell 2.2% in its fiscal first quarter ended September 30, 2012, to $22.3 million from $22.8 million a year earlier. Earnings per share were unchanged at $0.18 on fewer shares outstanding.
Sales rose 4.1%, to $495.8 million from $476.4 million. Broadridge continues to do a good job of attracting new clients and holding on to existing ones.
The company spent $76.1 million on share repurchases during the quarter. It aims to buy back a further 6.7 million shares, or 5.5% of the total outstanding. There is no time limit to these purchases.
Excluding unusual items, the company expects to earn between $1.76 and $1.86 a share this year. The stock trades at a reasonable 12.7 times the midpoint of this range. The $0.72 dividend yields 3.1%.
Broadridge is a buy.

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