Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, August 14, 2009

Article Excerpt

BROADRIDGE FINANCIAL SOLUTIONS INC., $20.30, New York symbol BR, reported this week that its earnings rose 16.2% in the fiscal year ended June 30, 2009, to $1.58 a share from $1.36 in the prior year. If you disregard unusual items, including a gain on the early retirement of debt and a tax credit that lowered its effective income-tax rate, Broadridge’s earnings per share rose 6.3%, to $1.51 from $1.42. The improved earnings came despite difficult conditions in the financial sector. Broadridge serves the investment industry in three main areas: investor communications; securities processing; and transaction clearing, trade settlements and other back-office operations. Its clients include 250 banks, 500 mutual-fund families and 5,000 publicly listed companies. Revenue fell 2.6%, to $2.1 billion from $2.2 billion. The drop was partly caused by the rising U.S. dollar, which lowered the contribution of Broadridge’s international operations. These account for about 10% of its revenue. As well, more companies are taking advantage of the SEC’s “notice…