Entering text into the input field will update the search result below

INTL: Emerging Specialty Finance Player Delivers A Rev & Eps Beat For Q 3 Maintain Buy

Aug. 17, 2016 11:15 PM ETSNEX
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

INTL FCStone (INTL)

Double digit growth in Commercial Hedging and Securities segments led INTL to deliver better than expected performance. We are maintaining our last BUY rating and $36.00 price target, which will be updated following our review of the 10-Q.

52-Week Range

$24.27 - $36.97

LT Debt (million)

$257.1

Shares Outstanding

18.4 million

LT Debt/Equity

61.9%

Insider/Institutional

9.78% /75.97%

ROE (TTM)

14.5%

Public Float

14.7 million

Book Value/Share

$22.68

Market Capitalization

$543.8 million

Daily Volume (3M)

78,269

FYE SEP

2015A

2016E

2017E

EPS($)

ACTUAL

CURRENT

PREVIOUS

CURRENT

PREVIOUS

Q1 Dec

$0.49A

0.46A

0.46A

0.67E

0.56E

Q2 Mar

$0.68A

0.76A

0.76A

0.86E

0.73E

Q3 Jun

$0.62A

0.78A

0.52E

0.74E

0.65E

Q4 Sep

$1.09A

1.10E

0.94E

1.29E

1.13E

Year*

$2.88A

$3.10E

$2.71E

$3.56E

$3.07E

P/E Ratio

10.2x

9.5x

8.3x

Change

188.8%

7.7%

14.8%

FYE SEP

2015A

2016E

2017E

Revenue ($ mil.)

ACTUAL

CURRENT

PREVIOUS

CURRENT

PREVIOUS

Q1 Dec

$137.5A

$151.3A

$151.3A

$170.8E

$168.1E

Q2 Mar

156.5A

$166.1A

$166.1A

$177.7E

$175.0E

Q3 Jun

151.6A

$175.0A

$155.1E

$183.3E

$178.0E

Q4 Sep

178.7A

$185.6E

$182.9E

$213.9E

$211.3E

Year

624.3A

$678.0E

$655.4E

$745.8E

$732.5E

Change

27.2%

8.6%

10.0%

  • Numbers may not add up due to rounding.

Q3:16 Highlights

  • Operating revenues surged 15.4% to $175.0 million in Q3:16 from $151.6 million in the year earlier quarter, primarily attributable to the robust growth in the operating revenues of Commercial Hedging and Securities segments, which rose 16% and 14% respectively.
  • Revenues of commercial hedging segment, a principle contributor to the company's overall revenue, grew 16% to $71.9 million for the quarter from $62.2 million as a result of improved market conditions in the domestic grain markets and growth in London operations.
  • Securities segment revenues jumped 14% to $41.6 million in Q3:16 from $36.5 million in the same quarter of previous year as the segment witnessed a strong performance in the debt trading markets, both domestic and international operations.
  • Compensation expense, which historically accounts for ~45% of total operating costs, grew 10.5% to $69.4 million and represented 47.6% of total costs for the quarter.
  • Diluted earnings per share surged 27.3% to $0.78 from $0.62, due to solid top-line growth discussed above.
  • Annualized ROE for the quarter stood at 14.1% and 12.4% YTD, below the company's long term internal target of 15%.

Analyst's Disclosure: I/we have no positions in any stocks mentioned, but may initiate a long position in INTL over the next 72 hours.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You