FXCM Beats on Both Top and Bottom Lines
FXCM (NYS: FXCM) reported earnings on March 14. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), FXCM beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded.
Gross margins grew, operating margins dropped, and net margins grew.
FXCM booked revenue of $108.8 million. The four analysts polled by S&P Capital IQ predicted a top line of $99.2 million on the same basis. GAAP reported sales were 86% higher than the prior-year quarter's $58.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.28. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.17 per share on the same basis. GAAP EPS were $0.21 for Q4 against -$0.27 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 81.1%, 40 basis points better than the prior-year quarter. Operating margin was 19.5%, 7,060 basis points worse than the prior-year quarter. Net margin was 3.0%, 1,080 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $95.3 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $421.0 million. The average EPS estimate is $0.89.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 42 members out of 44 rating the stock outperform, and two members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give FXCM a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FXCM is outperform, with an average price target of $12.64.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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