The chart below shows how SNEX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SNEX sees a -0.71% change in stock price 10 days leading up to the earnings, and a +2.74% change 10 days following the report. On the earnings day itself, the stock moves by +0.20%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Net Income Surge: First quarter net income reached $85.1 million, reflecting a 23% increase year-over-year and a 19% increase from the previous quarter, with diluted earnings per share of $2.54.
Record Operating Revenues Growth: Operating revenues hit a record $944.3 million, up 20% compared to the prior year and 3% sequentially, showcasing strong business performance.
Revenue Increase Analysis: Net operating revenues increased by 17% year-over-year, driven by significant gains in physical contracts (up 80%) and FX CFDs (up 32%).
Retail Segment Performance: The self-directed retail segment reported a remarkable 41% increase in net operating revenues and a 98% surge in segment income, indicating strong client engagement and operational leverage.
Stock Split Approval: The board approved a three-for-two stock split, enhancing shareholder value and reflecting confidence in the company's growth trajectory.
Negative
OTC Derivatives Revenue Decline: OTC derivatives revenues were down 18%, largely due to revenue capture being down 22%.
Payments Revenue Decline: Payments segment net operating revenues were down 5% year-over-year, primarily due to tighter FX spreads in key payment corridors.
Rising Operational Costs: Fixed compensation and related costs were up 24% versus a year ago, indicating rising operational costs.
Interest Income Decline: The interest and fee income net of interest paid to clients saw a $6 million decline in the immediately preceding quarter, reflecting pressure on income streams.
Payments Revenue Decline: The payments segment experienced a 4% decrease year-on-year in revenue, marking the first decline after years of consistent growth.
StoneX Group Inc. (NASDAQ:SNEX) Q1 2025 Earnings Call Transcript
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