Topic: Growth Stocks

BROADRIDGE FINANCIAL SOLUTIONS $52.97 – New York symbol BR

BROADRIDGE FINANCIAL SOLUTIONS $52.97 (New York symbol BR; TSINetwork Rating: Extra Risk) (201-714-3000; www.broadridge.com; Shares outstanding: 120.0 million; Market cap: $6.4 billion; Dividend yield: 2.0%)continues to hit new all-time highs after reporting strong quarterly results.

Without one-time items, Broadridge earned $39.9 million, or $0.32 a share, in its fiscal 2015 second quarter, which ended December 31, 2014. That’s up 27.9% from $31.2 million, or $0.25 a share, a year earlier. The company continues to add new clients and is doing a good job of holding on to existing ones.

Revenue gained 10.4%, to $574.6 million from $520.6 million.

Broadridge typically makes about half of its profits in its fiscal fourth quarter, which ends on June 30. That’s the busiest time for processing proxies and annual reports.

The company expects to earn $2.42 to $2.52 a share in fiscal 2015. The stock is up 47% for us since April 2014 and now trades at 21.4 times the midpoint of that range. That’s still reasonable in light of Broadridge’s growth prospects.

Broadridge is a buy.

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