BGC Partners Downgrades Revenue Outlook for Second Quarter
- BGC Partners shares had a stellar run earlier this month, gaining 25 percent to print a 3-month high at $3.22.
BGC Partners, Inc. (NASDAQ: BGCP), a global brokerage company specializing in financial and real estate markets, has lowered its revenue forecast for the second quarter.
Despite strong gains in revenue and profit in the first quarter, the company sees turnover across rates and foreign exchange in the three months through June 2020 below forecasts and warns that revenue is likely to be slightly below the low-end of the range of its previously stated outlook.
BGC Partners, however, expects pre-tax adjusted earnings to be a touch higher than current estimates. Additionally, BGC's margins benefited from its improved payout ratio related to its Fenics platform.
BGC's FENICS solutions support all aspects of foreign exchange (FX) option activity from pricing, automated price distribution, trading, Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term, and post-trade processing (STP, trade reporting, etc.).
BGC Partners shares have had a stellar run earlier this month, gaining 25 percent to print a 3-month high at $3.22, which made it one of the best-performing stocks on the NASDAQ market. The stock however, was unable to repeat the trick as quit markets after Corona-led 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 lost steam was impacting revenue growth.
The company pointed out in May that its guidance ranges for Q2 revenue were $525M-$575M and Q2 pre-tax adjusted earnings of $89M-$109M, which were unusually wide due to the uncertainty regarding the effects of the pandemic.
In the first quarter, the company's adjusted earnings totaled $99.78 million or $0.19 per share for the period. This compares with $61.87 million, or $0.18 per share, in Q1 2019.
BGC Partners' voice/hybrid and fully electronic brokerage businesses benefited from the unprecedented amounts of government and corporate debt issuance that were underway over March, April, and May. But at some point in June, the quantitative easing policies were bound to run out of momentum, and the shares were thus punished.
BGC Partners, Inc. (NASDAQ: BGCP), a global brokerage company specializing in financial and real estate markets, has lowered its revenue forecast for the second quarter.
Despite strong gains in revenue and profit in the first quarter, the company sees turnover across rates and foreign exchange in the three months through June 2020 below forecasts and warns that revenue is likely to be slightly below the low-end of the range of its previously stated outlook.
BGC Partners, however, expects pre-tax adjusted earnings to be a touch higher than current estimates. Additionally, BGC's margins benefited from its improved payout ratio related to its Fenics platform.
BGC's FENICS solutions support all aspects of foreign exchange (FX) option activity from pricing, automated price distribution, trading, Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term, and post-trade processing (STP, trade reporting, etc.).
BGC Partners shares have had a stellar run earlier this month, gaining 25 percent to print a 3-month high at $3.22, which made it one of the best-performing stocks on the NASDAQ market. The stock however, was unable to repeat the trick as quit markets after Corona-led 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 lost steam was impacting revenue growth.
The company pointed out in May that its guidance ranges for Q2 revenue were $525M-$575M and Q2 pre-tax adjusted earnings of $89M-$109M, which were unusually wide due to the uncertainty regarding the effects of the pandemic.
In the first quarter, the company's adjusted earnings totaled $99.78 million or $0.19 per share for the period. This compares with $61.87 million, or $0.18 per share, in Q1 2019.
BGC Partners' voice/hybrid and fully electronic brokerage businesses benefited from the unprecedented amounts of government and corporate debt issuance that were underway over March, April, and May. But at some point in June, the quantitative easing policies were bound to run out of momentum, and the shares were thus punished.