The 10-second takeaway
For the quarter ended March 31 (Q1), FXCM missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. GAAP earnings per share increased significantly.
Gross margins dropped, operating margins grew, net margins grew.
FXCM logged revenue of $122.9 million. The four analysts polled by S&P Capital IQ wanted to see revenue of $127.2 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $101.2 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 $0.23. The six earnings estimates compiled by S&P Capital IQ anticipated $0.23 per share. GAAP EPS of $0.23 for Q1 were 44% higher than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 76.2%, 390 basis points worse than the prior-year quarter. Operating margin was 24.4%, 460 basis points better than the prior-year quarter. Net margin was 5.6%, 270 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $124.0 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $482.3 million. The average EPS estimate is $0.88.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 42 members out of 43 rating the stock outperform, and one members rating it underperform. Among nine CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give FXCM a green thumbs-up, and 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 $14.96.
- Add FXCM to My Watchlist.