Broadridge Financial reports drop in 4th-quarter earnings on discontinued operations

Broadridge Financial reports drop in 4Q earnings

LAKE SUCCESS, N.Y. — Technology outsourcing company Broadridge Financial Solutions Inc. reported a 10 percent drop in quarterly net income Thursday, hurt by results from a discontinued securities clearing business.

But the company said earnings from continuing operations edged higher on a 5 percent increase in revenue.

And it announced that it will raise its dividend 7 percent to an annual rate of 60 cents per share and buy back up to 10 million of its own shares.

The company’s stock rose 21 cents to $20.22 in morning trading. It has traded between $18.51 and $24.02 in the past year.

Broadridge booked net income of $105.1 million, or 76 cents per share, for three months ended June 30. That’s down from $116.9 million, or 83 cents per share, a year ago.

Excluding discontinued operations, the company said it would have earned $116.2 million, or 84 cents per share, up from $115.8 million, or 82 cents per share.

Revenue climbed to $750.5 million from $716.3 million.

On average, analysts surveyed by Thomson Reuters forecast a quarterly profit of 84 cents per share and revenue of $748.9 million.

Looking ahead, the company expects revenue growth for the fiscal year ending in June, 2011 of 1 percent to 4 percent. That works out to between $2.23 billion and $2.3 billion, while analysts expect $2.26 billion.

It expects earnings per share from continuing operations of $1.55 to $1.65, compared with the average estimate of $1.61 per share.