Stock picks: Broadridge reports higher results in latest quarter

Broadridge Financial Services Inc., symbol BR on New York, serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. It mails and processes 66% of all proxy votes. The company earned $32.6 million in the three months ended March 31, 2011. That’s up 5.8% from $30.8 million a year earlier. The stock pick’s earnings per share rose 13.6%, to $0.25 from $0.22, on fewer shares outstanding. That beat the consensus estimate of $0.20 a share. Revenue rose 7.4%, to $527.1 million from $490.8 million. That also beat the consensus revenue estimate of $521.0 million. The stock pick’s acquisitions were the main reasons for these gains: In December 2010, it paid $19.5 million for Forefield Inc., which makes web-based software that allows financial advisors to deliver educational and marketing materials to clients. In January 2011, Broadridge paid $201 million for Matrix Financial Solutions Inc., which processes trades and provides administrative services to mutual funds. The company is also doing good job of holding on to its clients. These helped offset lower revenues from event-related proxy services, as mutual funds are holding fewer unitholder meetings and other special events. You can get our clear buy/sell/hold advice on Broadridge and dozens of other U.S. stock picks when you subscribe to Wall Street Stock Forecaster. What’s more, you can get the latest issue absolutely free. Click here to learn how.

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Jim Bates

Jim is an associate editor at TSI Network. He is the lead reporter and analyst for The Successful Investor and Wall Street Stock Forecaster and a member of the Investment Planning Committee. Jim has held the Chartered Financial Analyst designation since 1992 and spent more than a decade at the Financial Post DataGroup before joining TSI Network. He has a Bachelor of Commerce degree from the University of Toronto.

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