Here’s our Pick of the Month

Article Excerpt

BROADRIDGE FINANCIAL SOLUTIONS $115.09 New York symbol BR; TSINetwork Rating: Average) (201-714-3000; www.broadridge.com; Shares outstanding: 116.7 million; Market cap: $13.6 billion; Dividend yield: 1.3%) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. Broadridge is trading near new all-time highs this week after reporting stronger earnings in the latest quarter. For the three months ended March 31, 2018, revenue rose 6.2%, to $1.07 billion from $1.01 billion a year earlier. Excluding one-time items, the company earned $121.4 million, or $1.00 a share. That’s up 45.7% from $83.3 million, or $0.69 a share, a year earlier. It also beats the consensus estimate of $0.79 a share. The big earnings jump came from much higher fee revenues—the result of increased mutual fund proxy activity and equity proxy contests. The revenue Broadridge generates here leads to higher levels of profitability because any additional business activity makes use of the company’s existing systems. The stock currently trades at a high 28.3 times Broadridge’s forecast fiscal 2018…

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