Broadridge quarterly profit climbs on investor communications strength

Broadridge Financial reported higher fourth-quarter profit on Tuesday, helped by strength in its investor communications business.

Shares of the company have fallen about 29.5% so far this year, but rose 1.7% in premarket trading following the results.

Broadridge's investor communication solutions segment, its biggest unit, recorded revenue of $1.73 billion in the fourth quarter, up from $1.6 billion a year earlier.

"We are building the infrastructure for the markets of tomorrow and are enabling Governance solutions for tokenized assets, reinventing shareholder engagement, and digitizing communications," CEO Tim Gokey said.

Broadridge is one of the largest investor communication and technology services providers in the U.S. to banks, broker-dealers, and other financial institutions. It plays a critical role in enabling proxy voting, trade processing, and regulatory compliance.

Its net earnings were $398 million, or $3.44 per share, in the three months ended June 30, compared with $374.2 million, or $3.16 per share, a year ago.