The 10-second takeaway
For the quarter ended Dec. 31 (Q4), FXCM missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share shrank significantly.
Margins shrank across the board.
FXCM booked revenue of $108.1 million. The five analysts polled by S&P Capital IQ hoped for net sales of $111.6 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.13. The seven earnings estimates compiled by S&P Capital IQ averaged $0.15 per share. Non-GAAP EPS of $0.13 for Q4 were 54% lower than the prior-year quarter's $0.28 per share. GAAP EPS of $0.11 for Q4 were 48% 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 77.4%, 390 basis points worse than the prior-year quarter. Operating margin was 13.7%, 710 basis points worse than the prior-year quarter. Net margin was 2.8%, 10 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $124.3 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $505.5 million. The average EPS estimate is $0.97.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 40 members out of 41 rating the stock outperform, and one members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give FXCM a green thumbs-up, and 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 $12.06.
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