Investment Technology Group Earnings: Here’s Why Shares are Up 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 1.7%.

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Investment Technology Group Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 71.43% to $0.24 in the quarter versus EPS of $0.14 in the year-earlier quarter.

Revenue: Decreased 3.14% to $132.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Investment Technology Group Inc. reported adjusted EPS income of $0.24 per share. By that measure, the company beat the mean analyst estimate of $0.15. It beat the average revenue estimate of $130.1 million.

Quoting Management: “Stronger overall performance in our European business and improved operating efficiency drove significant improvements in profitability, demonstrating the leverage in our business,” said Bob Gasser, ITG’s Chief Executive Officer and President. “We will continue to focus on expense discipline and the broadening of our client relationships to enhance shareholder returns.”

Key Stats (on next page)…

Revenue increased 8.7% from $121.53 million in the previous quarter. EPS increased 1100% from $0.02 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.17 and has not changed. For the current year, the average estimate has moved up from a profit of $0.61 to a profit of $0.63 over the last ninety days.

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