U.S. News

Broadridge 3Q net earnings down 39 percent


Technology outsourcing company Broadridge Financial Solutions Inc. said Monday fiscal third-quarter net income fell 39 percent as expenses and a loss from discontinued operations outweighed higher revenue.

The Lake Success, N.Y., company reported net income of $24.9 million, or 18 cents per share, compared with $40.9 million, or 29 cents per share a year ago.

The current results included a loss from discontinued operations of 4 cents per share.

Excluding that, the company reported net income from continuing operations of $30.8 million, or 22 cents per share, compared with $41.2 million, or 29 cents a year ago.

Analysts surveyed by Thomson Reuters, who usually exclude one-time items, expected 21 cents a share.

Revenue grew to $490.8 million from $463.7 million a year ago.

Expenses rose to $442.4 million from $409.2 million.

CEO Richard J. Daly said weak market conditions affected trade volume and other business.

Broadridge plans to close the sale of Penson Worldwide Inc. in June, exiting the brokerage clearing business. Broadridge will enter the registered equity transfer agency market through an acquisition. Those moves should improve profitability in the coming months, Daly said.

The company expects net income for 2010 of $1.36 to $1.42 per share, including the loss from discontinued clearing operations. That's revised from the previous quarter's estimate of $1.40 to $1.50 per share.

Shares fell 42 cents to close at $22.25.