Investment Technology Group Earnings: Here’s Why Investors are Buying Shares Now

Investment Technology Group Inc. (NYSE:ITG) 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 up 10.63%.

Investment Technology Group Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 440% to $0.27 in the quarter versus EPS of $0.05 in the year-earlier quarter.

Revenue: Rose 9.76% to $139.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Investment Technology Group Inc. reported adjusted EPS income of $0.27 per share. By that measure, the company beat the mean analyst estimate of $0.2. It beat the average revenue estimate of $131.5 million.

Quoting Management: “Continued positive momentum in our European and Asia Pacific businesses and improved average revenue capture in the U.S. drove significant improvements in profitability during the second quarter,” said Bob Gasser, ITG’s Chief Executive Officer and President. “We continue to focus on improving the operating performance of our four business units and increasing client penetration across our four regions. The changes we implemented to our operating model in late 2012 were a key driving force behind our improved margins in the first half of 2013.”

Key Stats (on next page)…

Revenue increased 5.49% from $132.05 million in the previous quarter. EPS increased 12.5% from $0.24 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.17 to a profit $0.16. For the current year, the average estimate has moved down from a profit of $0.78 to a profit of $0.77 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)