BGC Partners’ Q3 Revenues Offset Rising Income, Earnings

BGC's revenues took a slight tumble in Q3 2016, despite seeing a steady rise across the rest of its earnings.

BGC Partners (NASDAQ:BGCP), a global brokerage company servicing the financial and real estate market, has reported its Q3 2016 financial metrics ending for the period ending September 30, 2016 – the latest figures show a mixed bag in terms of key metrics relative to the year prior, overall trending positive given strong rises in income, according to a BGC Partners report.

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For Q3 2016, BGC Partners (NASDAQ:BGCP) yielded a GAAP revenue of $643.5 million – this correlated to $685.3 million in Q3 2015, or -6.1% YoY. Moreover, the group’s income before taxes was $104.5 million for the quarter, up from $83.3 million over the same period in 2015, which was reflective of a gain of 25.5% YoY.

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The group also saw its net income for fully diluted shares swell to $92.1 million in Q3 2016, up from just $58.5 million in Q3 2015, or 57.4% YoY – the largest rise of any of its metrics on a YoY basis in Q3. BGC’s reported diluted earnings per share also increased on a comprehensive basis to $0.21 for Q3 2016, up from $0.15 from Q3 2015 or 40.0% YoY.

Finally, BGC Partners’ adjusted EBITDA was $196.2 million in Q3 2016, which was good for a rise of 16.8% YoY from $168.0 million in Q3 2015. At the time of writing, BGC Partners’ (NASDAQ:BGCP) share prices are trading at $8.86, down -1.06% during US trading.

According to Shaun D. Lynn, President of BGC, in a recent statement on the metrics: “Our Financial Services margin continued to expand, despite the sale of Trayport, which had pre-tax margins of nearly 45 percent. Our profitability in the segment continues to improve largely because of the realization of integration synergies and the ongoing strength of our highly profitable FENICS platform, which increased its quarterly pre-tax earnings by 8% compared with a year earlier.”

 

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