Broadridge Financial Solutions Inc , which was spun off at the end of March by Automatic Data Processing Inc, said on Wednesday quarterly profit fell 2 percent, as expenses grew faster than revenue.
The Jersey City, New Jersey-based provider of communications, securities processing and trade clearing services nevertheless said results topped its expectations, helped by higher fees related to proxy battles.
Net income for the fiscal fourth quarter ended June 30 fell to $98.7 million, or 71 cents per share, from $100.7 million, or 72 cents, a year earlier.
Profit from continuing operations excluding one-time transition expenses and interest on new debt totaled 82 cents per share, Broadridge said.
Net revenue increased 8 percent to $773.7 million, while expenses rose 12 percent to $615.2 million, it said.
Analysts on average expected profit of 73 cents per share on revenue of $729.3 million, according to Reuters Estimates.
Broadridge said it till sees fiscal 2008 profit of $1.17 to $1.25 per share before items, with revenue unchanged to up 3 percent. Fiscal 2007 net revenue totaled $2.14 billion.
Analysts on average expected fiscal 2008 profit of $1.22 per share on revenue of $2.11 billion.
Broadridge shares closed Tuesday at $17.84 on the New York Stock Exchange.