Shares of Investment Technology Group Inc. tumbled Wednesday after the provider of electronic trading tools said June trading volume rose 5 percent and non-U.S. earnings will range between 2 cents and 3 cents per share for the second quarter.
ITG shares fell $3.83, or 11.5 percent, to $29.53. Earlier in the session, shares of ITG fell to a three-year low of $29.13.
BMO Capital Markets analyst Michael Vinciquerra wrote in a research note that based on market statistics, he estimates that ITG's market share declined in June to 2.59 percent from 2.63 percent the previous month.
An average of 206.1 million shares were traded daily in June, compared with 197 million shares during the year-ago period and 177 million shares per share in May, ITG said earlier Wednesday.
Non-U.S. earnings for the second quarter are also below recent levels, which will hurt earnings, Vinciquerra said ITG said it expects non-U.S. earnings to range between 2 cents and 3 cents per share for the second quarter.
That estimate is below recent quarterly contributions ranging from 5 cents to 11 cents per share over the past year, Vinciquerra wrote in the note.
Vinciquerra cut his second-quarter earnings estimate to 57 cents per share from 62 cents per share. He now estimates ITG will earn $2.63 per share for the full year. Analysts polled by Thomson Financial expect net income of $2.72 per share in 2008.
Vinciquerra continues to rate ITG "Outperform," but said it will likely take improvements in market conditions both in the U.S. and internationally to send shares higher.
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