The 10-second takeaway
For the quarter ended Dec. 31 (Q4), FXCM beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded.
Gross margins grew, operating margins dropped, and net margins grew.
FXCM booked revenue of $108.8 million. The four analysts polled by S&P Capital IQ predicted a top line of $99.2 million on the same basis. GAAP reported sales were 86% higher than the prior-year quarter's $58.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.28. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.17 per share on the same basis. GAAP EPS were $0.21 for Q4 against -$0.27 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 81.1%, 40 basis points better than the prior-year quarter. Operating margin was 19.5%, 7,060 basis points worse than the prior-year quarter. Net margin was 3.0%, 1,080 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $95.3 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $421.0 million. The average EPS estimate is $0.89.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 42 members out of 44 rating the stock outperform, and two members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give FXCM a green thumbs-up, and one gives 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 $12.64.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.