The 10-second takeaway
For the quarter ended Sep. 30 (Q3), FXCM beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins dropped, net margins expanded.
FXCM reported revenue of $114.9 million. The four analysts polled by S&P Capital IQ expected to see revenue of $107.0 million on the same basis. GAAP reported sales were 5.5% higher than the prior-year quarter's $109.1 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 $0.14 per share. GAAP EPS of $0.17 for Q3 were 19% lower than the prior-year quarter's $0.21 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 77.7%, 130 basis points better than the prior-year quarter. Operating margin was 19.7%, 210 basis points worse than the prior-year quarter. Net margin was 3.9%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $116.8 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $419.2 million. The average EPS estimate is $0.61.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 42 members out of 43 rating the stock outperform, and one members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine 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 $11.83.
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