Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of financial services company Knight Capital Group
So what: Knight Capital handily crushed Wall Street estimates this morning by reporting a quadrupling in its net income to $0.43 on a 31% jump in revenue to $341 million. These estimates compare to Street expectations of $0.26 and $321 million. The driving force behind the earnings blowout was strength in the company's Market Making segment which saw revenue grow 69% and pre-tax earnings jump 181% over the year-ago period.
Now what: If Knight Capital has proven anything over the past decade, it's that regardless of the trading conditions and consumers' willingness (or unwillingness) to take on risk, it can turn a healthy profit. Valued at nine times forward earnings and 81% of its book value, Knight could present shareholders with a nice bargain even after today's pop and should, if anything, be worthy of a spot on most investors' watchlists.
Craving more input? Start by adding Knight Capital Group to your free and personalized watchlist so you can keep up on the latest news with the company.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.