INTL FCStone Sees Q1 2016 Earnings Crumble Across Key Metrics

Revenues continued to tick lower in Q1 2016, with INTL FCStone's core business seeing uneven results.

INTL FCStone Inc. (NASDAQ:INTL), a global financial services group, has reported its Q1 2015 operating metrics ending December 31, 2015, which were notably lower QoQ, according to an INTL FCStone statement.

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During Q1 2016, INTL FCStone reported its total revenues of just $151.3 million, which represents a sizable decline of -15.3% QoQ from $178.7 million in Q4 2015. Across a yearly time interval however, revenues in Q1 2016 did manage to secure an advance, notching a double-digit growth of 10.0% YoY from $137.5 million in Q1 2015.

Total revenues were largely the same narrative, albeit with more exacerbated losses in Q1 2016 – during Q1 2016 the group reported revenues of only $3.4 billion, down -75.0% YoY from $13.6 billion in Q1 2015, by far the steepest decline in recent quarters. Another area where INTL FCStone underperformed in Q1 2016 was in the area of net income. In Q1 2016, the group released a figure of $8.8 million, down -6.4% YoY from $9.4 million in Q1 2015.

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Shareholders of INTL FCStone have by and large found little to enjoy with the company’s 2016 performance, which has fallen unabated year-to-date (YTD). During Q1 2016, the company disclosed a diluted earnings per share at $0.47, down from $0.50 in Q1 2015, or -6.0% YoY.

At the time of writing, shares of INTL FCStone settled at $25.10 during US trading Wednesday, having fallen -4.20% on the earnings release. The stock still sits above a 52-week low of $19.91 though has not been able to mount any sort of recovery in the new year.

According to Sean M. O’Connor, Chief Executive Officer (CEO) of INTL FCStone Inc, in a recent statement on the metrics: “We had strong operating results during the quarter in spite of the difficult macro environment, especially in commodities.”

“Total segment income was up 26% with very strong gains from the Securities and Global Payments segments offsetting declines in our commodities-related segments. Similar to our fourth quarter 2015 results, marked-to-market fluctuations in our investments held in our interest rate management program had an effect on our bottom line results,” he added.

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