The 10-second takeaway
For the quarter ended March 31 (Q1), FXCM beat expectations on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue grew and GAAP earnings per share didn't move.
Gross margins grew, operating margins expanded, net margins dropped.
FXCM recorded revenue of $102.6 million. The five analysts polled by S&P Capital IQ expected revenue of $98.9 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $90.2 million.
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 $0.17. The seven earnings estimates compiled by S&P Capital IQ predicted $0.18 per share. GAAP EPS of $0.16 were the same as 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 80.3%, 430 basis points better than the prior-year quarter. Operating margin was 16.3%, 10 basis points better than the prior-year quarter. Net margin was 2.8%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $106.9 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $431.7 million. The average EPS estimate is $0.77.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 36 members out of 38 rating the stock outperform, and two members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 11 give FXCM a green thumbs-up, and one 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 $13.71.
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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. He is the 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 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.