BROADRIDGE FINANCIAL SOLUTIONS $46.55 - New York symbol BR

BROADRIDGE FINANCIAL SOLUTIONS $46.55 (New York symbol BR; TSINetwork Rating: Extra Risk) (201-714-3000; www.broadridge.com; Shares outstanding: 120.0 million; Market cap: $5.6 billion; Dividend yield: 2.3%) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. The company processes 90% of all proxy votes in the U.S. and Canada.

Without one-time items, Broadridge earned $37.0 million, or $0.30 a share, in its fiscal 2015 first quarter, which ended September 30, 2014. That’s down 22.9% from $48.0 million, or $0.39 a share, a year earlier. The company paid employees higher commissions on new sales and performance bonuses. It also expanded its sales and marketing capabilities.

Broadridge typically makes about half of its profits in its fiscal fourth-quarter ended June 30. That’s the busiest period for processing proxies and annual reports for its clients.

Revenue gained 1.9% in the latest quarter, to $555.8 million from $545.2 million. Broadridge expects to earn $2.42 to $2.52 a share in fiscal 2015. The stock is up 31% for us since April 2014, but trades at a reasonable 18.8 times the midpoint of that range.

The company’s long-term debt of $524.1 million is a low 9.4% of its market cap, and it holds cash of $331.3 million, or $2.76 a share.

Broadridge is a buy.

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