Knight Capital Group Earnings: Here’s Why the Stock is Down Now

Knight Capital Group Inc. (NYSE:KCG) had a loss and met 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 0.70%.

Knight Capital Group Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $0.0 in the quarter versus EPS of $0.04 in the year-earlier quarter.

Revenue: Rose 9.04% to $315.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Knight Capital Group Inc. reported adjusted EPS loss of $0 per share. By that measure, the company missed the mean analyst estimate of $0. It beat the average revenue estimate of $287.8 million.

Quoting Management: “The second quarter of 2013 was a period of intense activity during which the two firms together built the foundation for KCG,” said Daniel Coleman, Chief Executive Officer of KCG. “The teams deepened working relationships at all levels and collaborated to accomplish the steps necessary to complete the transaction. Of critical importance, individuals worked tirelessly to meet and exceed the levels of service that clients expect from an industry leader.”

Key Stats (on next page)…

Revenue decreased 5.04% from $332.13 million in the previous quarter. EPS decreased to $0.0 in the quarter versus EPS of $0.06 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 $0.05 to a loss $0. For the current year, the average estimate has moved down from a profit of $0.23 to a loss of $0 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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

More Articles About:   , , , ,  

More from The Cheat Sheet