Gain Capital Holdings Earnings: Here’s Why the Stock is Rising Now

Gain Capital Holdings Inc (NYSE:GCAP) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.08%.

Gain Capital Holdings Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 238.46% to $0.44 in the quarter versus EPS of $0.13 in the year-earlier quarter.

Revenue: Rose 58.97% to $73 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Gain Capital Holdings Inc reported adjusted EPS income of $0.44 per share. By that measure, the company beat the mean analyst estimate of $0.17. It beat the average revenue estimate of $54.71 million.

Quoting Management: “GAIN Capital’s strong results in the second quarter of 2013 demonstrate the significant operating leverage inherent in our business model. Amid more favorable market conditions, net revenues increased 59.7%, while EBITDA rose threefold; EBITDA margin reached 36.8%,” said Glenn Stevens, CEO of GAIN Capital. “Our commission-based businesses generated $14.2 million of net revenue, and represented 19.5% of the total net revenues, compared with just 9.4% of total net revenues in the second quarter of last year. This demonstrates our continued success in augmenting GAIN’s core retail OTC trading business with fee-based revenue derived from our growing institutional and futures businesses.”

Key Stats (on next page)…