INTL FCStone’s Q4 Earnings Mixed, Revenues Climb on YoY Basis

INTL FCStone Inc. (NASDAQ:INTL), a global financial services group, has reported its Q4 2016 operating metrics for the fiscal year ending September 30, 2016, which saw a large retreat across its aggregated revenues, according to an INTL FCStone statement.

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During Q4 2016, INTL FCStone reported its total revenues of just $2.78 billion, which represents a growth of 6.0% YoY from $2.63 billion in Q4 2015. Looking at the totality of the fiscal year however, revenues in 2016 came in at $14.75 billion, having fallen -57.5% YoY from $34.7 billion during the end of the 2015 fiscal year.

Operating revenues were more muted over a YoY basis, yielding $178.6 million Q4 2016 – during Q4 2015 the group’s operating revenues were virtually unchanged at $178.7 million. A look at the entire 2016 year was much more upbeat, as total operating revenues in 2016 were $671.0 million, up 7.5% YoY from $624.3 million in 2015.

INTL FCStone’s net income was also much lower in Q4 2016, justifying a figure of $16.8 million vs. $21.1 million in Q4 2015, or -20.4% YoY. The losses were somewhat diluted when combined on a yearly basis, with 2016’s total net income coming in at $54.7 million, down -1.8% YoY from $55.7 million in 2015.

Earnings Decline

Shareholders of INTL FCStone also saw a diminishing performance in 2016, as the company disclosed a diluted earnings per share at $0.90 in Q4 2016, down from $1.09 in Q4 2015, or -17.5% YoY.

According to Sean M. O'Connor, Chief Executive Officer of INTL FCStone Inc, in a recent statement on the metrics: “We believe that the market environment is now becoming more positive for our business with interest rates starting to increase, Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term increasing, prices of commodities generally increasing and the strong dollar reducing our effective cost base overseas, while revenues there are generally dollar-based.”

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