FXCM Misses Where It Counts
FXCM (NYS: FXCM) reported earnings on May 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), FXCM beat expectations on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue grew and GAAP earnings per share didn't move.
Gross margins grew, operating margins expanded, net margins dropped.
FXCM recorded revenue of $102.6 million. The five analysts polled by S&P Capital IQ expected revenue of $98.9 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $90.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.17. The seven earnings estimates compiled by S&P Capital IQ predicted $0.18 per share. GAAP EPS of $0.16 were the same as 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 80.3%, 430 basis points better than the prior-year quarter. Operating margin was 16.3%, 10 basis points better than the prior-year quarter. Net margin was 2.8%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $106.9 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $431.7 million. The average EPS estimate is $0.77.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 36 members out of 38 rating the stock outperform, and two members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 11 give FXCM a green thumbs-up, and one give 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 $13.71.
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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. He is the 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 don't 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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