Knight Capital Reports Q3 Loss
Knight Capital Group (NYS: KCG) isn't shining in its armor today. The company announced Q3 consolidated net losses of $390 million, due in large part to a computer trading glitch that sent the company's portfolio haywire two months ago.
The company reported pre-tax losses of $461 million related to the Aug. 1 technology issue but noted that without the trading losses, related expenses and subsequent non-cash writedowns, it would have made a small profit on an operating basis.
The company reported shareholder losses totaling $764 million, or $6.30 per share. That's a big step down from Q3 earnings of $0.29 per share last year.
Shares of the company are down 75% since the Aug. 1 trading malfunction.
"The recapitalization [post-Aug. 1] restored the firm's liquidity and capital, Knight's market share in U.S. equities substantially rebounded, and we've undertaken measures to enhance processes and controls," CEO Tom Joyce is quoted as saying in a press release. "Overall, I believe the recovery to date speaks to the strength of our offering, the dedication of Knight's client teams, and deep client relationships we enjoy."
The article Knight Capital Reports Q3 Loss originally appeared on Fool.com.Justin Loiseau has no positions in the stocks mentioned above. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo.The Motley Fool has no positions in the stocks mentioned above. 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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