BGC Group Q3 revenue rises 13%, adjusted EPS up 17%

Overview

• Global financial technology firm's Q3 revenue rose 13% yr/yr

• Adjusted EPS for Q3 rose 17.2% yr/yr

• Company declared quarterly dividend of 2 cents

Outlook

• BGC expects Q4 revenue of $805-$865 mln

• Company guides Q4 pre-tax adjusted earnings of $178-$196 mln

Result Drivers

• BROKERAGE VOLUME GROWTH – ECS revenue rose on shipping, environmental and crude oil activity, while Rates and FX benefited from higher trading volumes

• CLIENT-ACTIVITY COSTS – Higher commissionable revenue and product mix lifted compensation, while selling, promotion and brokerage costs rose with client activity

• FMX AND FENICS EXPANSION – Fenics Growth Platforms rose 39.8%, driven by FMX, PortfolioMatch and Lucera

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment banking & brokerage services peer group is "buy."

• Wall Street's median 12-month price target for Bgc Group Inc is $16.00, about 42% above its November 4 closing price of $11.27

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)