The earnings presentation by the company's CEO and CFO last night gave an insight as to where might investors be carefully looking at to assess the next key fundamental for GAIN Capital's share price performance.
GAIN Capital's Chief Executive Officer (CEO), Glenn Stevens and his wingman Chief Financial Officer, Jason Emerson, couldn't dodge the plethora of questions about where GAIN Capital's savings are coming from in the near future during the earnings call yesterday. As shares of the company opened 10% lower on Tuesday trading, hitting a new 52-week low at $5.95, towards the end of the New York trading session, half of the lost ground was recovered and GAIN Capital's (NYSE:GCAP) stock closed lower by 5.11% on the day at $6.31.
Cost optimization related to the Acquisition of GFT has remained a key question on the minds of investors in GAIN Capital's stock. The firm announced that total expenses, excluding referral fees and acquisition related items, totaled $48.3 million for the quarter, which was down from $49.6 million last quarter, and down 18% compared to the same time last year on a pro forma basis.
Mr. Emerson stated, "This savings results from our progress capturing synergies from the GFT transaction. For the year, total expenses excluding referral fees, acquisition related items were $97.9 million, down 15% from $114.6 million on a pro forma basis."
He went on to elaborate that the company is seeing the results of its integration plan, this all having an impact on reducing the cost base. In conclusion, he stated that the company is "on track to deliver annual run rate expense reductions of $40 million by the fourth quarter of this year."
Is the Market Buying These Cost Reductions?
At first glance of today's trading, the answer is no, however the end of the session rally could bring in some additional information as to the market perceptions of the ongoing cost optimization efforts at the company following the GFT acquisition. The question and answer session during yesterday's earnings call resonated with a key question - where are the savings numbers?
Ultimately, this is likely to be the piece of news which will be key to the performance of GAIN Capital's share price going forward. Nyamh Alexander from Keefe, Bruyette & Woods (KBW) bluntly stated, "You are saying that you are on track for the 40 (million dollars), but I am not seeing it in the numbers."
Mr. Stevens countered with the chart in the earnings report which outlined the cost savings for the first half of 2014, stating, “When you say you're not seeing the $40 million, I guess I would point to our year-over-year expenses basis and actually I would even take you back to the chart, where we actually continue to march every quarter over the year with our fixed operating expenses.”
He concluded his answer to the question stating, “In terms of the $40 million run rate for the GFT deal, that's something that we said that over a year's time, going forward, we will be at a $40 million recurring lower run rate. So at the end of Q4 of this year, there would be no surprise here. We don't need to Hail Mary on December 31st.”
Stating that there will be a $40 million lower run rate for the two companies (GFT and Forex.com), Mr. Stevens has put the question to rest in his mind. But will the market buy this? This is the $40 million dollar question for GAIN Capital this fiscal year.
GAIN Capital's Chief Executive Officer (CEO), Glenn Stevens and his wingman Chief Financial Officer, Jason Emerson, couldn't dodge the plethora of questions about where GAIN Capital's savings are coming from in the near future during the earnings call yesterday. As shares of the company opened 10% lower on Tuesday trading, hitting a new 52-week low at $5.95, towards the end of the New York trading session, half of the lost ground was recovered and GAIN Capital's (NYSE:GCAP) stock closed lower by 5.11% on the day at $6.31.
Cost optimization related to the Acquisition of GFT has remained a key question on the minds of investors in GAIN Capital's stock. The firm announced that total expenses, excluding referral fees and acquisition related items, totaled $48.3 million for the quarter, which was down from $49.6 million last quarter, and down 18% compared to the same time last year on a pro forma basis.
Mr. Emerson stated, "This savings results from our progress capturing synergies from the GFT transaction. For the year, total expenses excluding referral fees, acquisition related items were $97.9 million, down 15% from $114.6 million on a pro forma basis."
He went on to elaborate that the company is seeing the results of its integration plan, this all having an impact on reducing the cost base. In conclusion, he stated that the company is "on track to deliver annual run rate expense reductions of $40 million by the fourth quarter of this year."
Is the Market Buying These Cost Reductions?
At first glance of today's trading, the answer is no, however the end of the session rally could bring in some additional information as to the market perceptions of the ongoing cost optimization efforts at the company following the GFT acquisition. The question and answer session during yesterday's earnings call resonated with a key question - where are the savings numbers?
Ultimately, this is likely to be the piece of news which will be key to the performance of GAIN Capital's share price going forward. Nyamh Alexander from Keefe, Bruyette & Woods (KBW) bluntly stated, "You are saying that you are on track for the 40 (million dollars), but I am not seeing it in the numbers."
Mr. Stevens countered with the chart in the earnings report which outlined the cost savings for the first half of 2014, stating, “When you say you're not seeing the $40 million, I guess I would point to our year-over-year expenses basis and actually I would even take you back to the chart, where we actually continue to march every quarter over the year with our fixed operating expenses.”
He concluded his answer to the question stating, “In terms of the $40 million run rate for the GFT deal, that's something that we said that over a year's time, going forward, we will be at a $40 million recurring lower run rate. So at the end of Q4 of this year, there would be no surprise here. We don't need to Hail Mary on December 31st.”
Stating that there will be a $40 million lower run rate for the two companies (GFT and Forex.com), Mr. Stevens has put the question to rest in his mind. But will the market buy this? This is the $40 million dollar question for GAIN Capital this fiscal year.
Interactive Brokers Expands Offerings with Daily Options on French Stocks
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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