BGC Earnings Prediction
The chart below shows how BGC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BGC sees a +0.36% change in stock price 10 days leading up to the earnings, and a +4.83% change 10 days following the report. On the earnings day itself, the stock moves by -0.79%. This data can give you a slight idea of what to expect for the next quarter's release.
BGC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
552.86M
16.23%
1.86%
Gross Margin
--
--
--
Operating Margin
6.91%
-19.37%
-49.71%
Net Margin
2.48%
-36.41%
-63.80%
EPS
0.03
0.00%
-62.50%
No Data Available
BGC Earnings Analysis
BGC Group, Inc. Class A Common Stock Corporation (BGC.O) Earnings Conference Call
Positive
Record Third Quarter Revenue: 1. Record Revenue Growth: BGC Group achieved record third quarter revenues of $561 million, reflecting a 16% increase compared to the previous year.
Earnings Improvement Highlights: 2. Significant Earnings Improvement: Pre-tax adjusted earnings rose by 24.4% to $126.7 million, while post-tax adjusted earnings increased by 34.5% to $126.6 million.
Segment Revenue Growth: 3. Strong Performance Across Segments: ECS revenues grew by 21.3% to $112.9 million, and rates revenues increased by 19.6% to $174.3 million, driven by higher volumes.
Record Volume Growth: 4. Robust Volume Growth in FMX: FMX UST generated record daily average volume of $53 billion, up 40% year-over-year, capturing 29.4% market share.
Liquidity Improvement: 5. Healthy Liquidity Position: As of September 30, BGC's liquidity stood at $772.5 million, an increase from $701.4 million at year-end 2023.
Negative
Rising Compensation Expenses: 1. Increased Compensation Costs: Compensation and employee benefits rose by 16.4%, primarily due to higher commissionable revenues, impacting overall profitability.
Non-Compensation Expense Increase: 2. Rising Non-Compensation Expenses: Non-compensation expenses increased by 17.5%, largely driven by higher interest expenses, which could pressure margins despite higher interest income.
CLOB Market Share Decline: 3. Lower Market Share in CLOB: The CLOB market share declined slightly to 29.4%, attributed to increased trading volumes among professional trading firms, indicating potential competitive challenges.
Acquisition Impact on Growth: 4. Limited Contribution from Acquisitions: The anticipated revenue growth for Q4 includes only 1% to 2% from recent acquisitions, suggesting reliance on organic growth for overall performance.
Margin Compression Risks: 5. Potential Margin Compression from Acquisitions: While the acquisitions are expected to be immediately accretive, they may initially lead to lower margins as integration occurs, impacting overall profitability in the short term.
BGC FAQs
How does BGC typically perform around its earnings report dates?
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BGC Earning Call Sentiment
BGC Group, Inc. (BGC) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
BGC.O
0.76%Positive
The company reported strong financial performance, with significant year-over-year growth in revenue, earnings, and margins. The guidance for Q3 2024 is optimistic, indicating continued revenue and earnings growth. The Q&A session reinforced positive sentiment with expectations of further FCM connections and accretive acquisitions. Although there are risks, such as macroeconomic and regulatory challenges, the overall outlook and strategic moves (e.g., SOFR launch, acquisitions) are positive. Given the market cap, the stock is likely to react strongly to these developments, resulting in a strong positive prediction (>8%).
