INTL FCStone (INTL) Posts Smaller-than-Expected Q4 Profit

INTL FCStone (NASDAQ: INTL) reported Q4 EPS of $0.90, $0.20 worse than the analyst estimate of $1.10. Revenue for the quarter came in at $178.6 million versus the consensus estimate of $185.64 million.

Sean M. O’Connor, CEO of INTL FCStone Inc., stated “We achieved continued good results in the fourth quarter, which was boosted by a bargain purchase gain on the Sterne Agee acquisition. We sustained our strong momentum and financial performance achieved in 2015 and achieved a record EPS for 2016. We recorded an ROE of over 13% for the year overall which we believe is a 'best in class' performance. We expanded our footprint and capabilities during the year with the addition of the Sterne Agee securities clearing and independent wealth management businesses, rounding out our clearing and execution offering and adding 50 correspondent clearing clients with over 120,000 accounts and over 500 independent advisors and $12 billion of assets under management. In addition, in October 2016 we acquired the ICAP oils voice brokerage business in the U.K. which is a well recognized franchise.”

“We believe that the market environment is now becoming more positive for our business with interest rates starting to increase, volatility increasing, prices of commodities generally increasing and the strong dollar reducing our effective cost base overseas, while revenues there are generally dollar-based. We now have the capability to provide execution, market intelligence and clearing services across all asset classes and in all major markets and believe we are ideally placed to take advantage of ongoing industry consolidation.”

For earnings history and earnings-related data on INTL FCStone (INTL) click here.

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