KCG Holdings Reports Q1 2015 Earnings, Revenues Soar QoQ

KCG Holdings has released its Q1 2015 earnings report, leaving investors with mixed feelings despite soaring revenues.

KCG Holdings, Inc. (NYSE: KCG) has released its Q1 2015 metrics, included consolidated earnings of $249.3 million, or $2.19 per diluted share, according to a KCG statement.

The most recent metrics in Q1 2015 build off a strong Q4 2014 performance, that saw consolidated earnings for Q4 2014, coming in at $26.1 million, or $0.23 per diluted share.

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In terms of revenues, KCG yielded $696,156,000 in Q1 2015, soaring 101.1% QoQ from $346,139,000 in Q4 2014. However, trading revenues were reported at just $208,795,000 in Q1 2015, falling -5.7% QoQ from $221,415,000 during Q4 2014.

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The big jump that catapulted revenues this quarter at KCG was GAAP pre-tax income, which was reported at $406,128,000 in Q1 2015, vs. just $26,531,000 in Q4 2014.

According to Daniel Coleman, Chief Executive Officer of KCG, in a recent statement on the metrics, “During the first quarter, we accomplished a great deal. On the cost front, we’ve relentlessly focused on operating expenses. On the client front, we continue to develop strategic relationships. In addition, we closed the sale of KCG Hotspot to BATS and initiated a process to rationalize our long-term debt.

“We’ve done all this while continuing to build out and optimize our trading businesses to position them for future revenue growth. Notwithstanding all of this, we believe we can do more. We can support our firm’s ability to grow with regard to improving returns on equity and optimizing our capital structure. To that end, we announced a planned $330 million tender offer at a range of $13.50 to $14.00 per share.”

“Also, individual investors continued to express confidence in the market by allocating an estimated $27.7 billion in net inflows to U.S. equities during the quarter, which represented the highest quarterly total during 2014. In non-U.S. equity market making, KCG continued to develop strategic asset classes that demonstrate promise,” added Mr. Coleman.

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