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Richard Daly
Richard Daly
Lower taxes lift Broadridge income
Claude Solnik //August 8, 2018 //
Listen to this articleLake Success-based Broadridge Financial Solutions’ fourth quarter net earnings increased 11 percent to $207 million, even as revenues slipped, as the firm’s taxes tumbled.
CEO Rich Daly said the firm had a “strong fourth quarter to cap off a very strong fiscal 2018,” which he attributed to a “strong performance and lower tax rate.”
Revenues for the three months ended June 30, 2018 dropped 2 percent to $1.32 billion from $1.35 billion in the prior comparable quarter.
Operating income fell 11 percent to$265 million, as operating income margin decreased to 20.1 percent from 22.1 percent.
But the firm’s effective tax rate fell to 19.8 percent from 34.3 percent a year ago, boosted by $22 million in tax benefits due to corporate tax rate changes under the Tax Cuts and Jobs Act and stock-based compensation.
Daly said the firm also invested in new products and technologies including artificial intelligence, blockchain, cloud and digital.
