Futures and options broker MF Global Ltd. said Thursday that its fiscal third-quarter profit slipped 10 percent, but results beat Wall Street's expectations.
Shares gained 40 cents, or 14 percent, to $3.25 in morning trading. The stock, which has traded between $1.72 and $29.53 over the past 12 months, is up nearly 40 percent since the start of the year.
For the three-month period ended Dec. 31, the company reported net income available to common shareholders of $28.2 million, or 23 cents per share, compared with $31.2 million, or 26 cents per share, in the prior-year quarter.
Before paying preferred dividends, the company's net income was $39 million, a 25 percent increase from the year-ago period.
Adjusted net income, which includes severance-related costs, was $18.8 million, or 13 cents per share, compared with $46.7 million, or 37 cents per share, in the 2008 fiscal third quarter.
Net revenue inched up to $422 million from $418.4 million a year earlier, boosted by a steep drop in interest expense.
Analysts polled by Thomson Reuters, on average, were anticipating earnings of 13 cents per share on revenue of $367.7 million. Analysts typically exclude one-time, unusual items from their estimates.
Total expenses declined 6 percent to $331.4 million from $353 million.
Principal transactions during the quarter totaled $109.9 million, up from $45.6 million in the year-ago period.
Total exchange-traded futures and options volumes were 402.5 million contracts versus 492.3 million in the same period in the prior year.
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