Yesterday was a big day for earnings reports after the bell. Two of the biggest reports that I made sure to pay attention to were the Cytori and FXCM Inc. (FXCM) reports. If you’d like to know what happened with Cytori, click here! In this post, it’s all about FXCM Inc. (FXCM)! If you haven’t noticed quite yet, the company’s stock soared today, gaining more than 20% in reaction to the report. So, you can imagine that it was outstanding! Below, we’ll talk about the FXCM Inc. (FXCM) earning report, the details with regard to how the company’s stock reacted, and what we can expect to see in trading next week.
FXCM Inc. (FXCM) Earnings Report Blows All Expectations Out Of The Water!
FXCM Inc. (FXCM) reported that in the quarter ending on December, 31st, the company generated an outstanding $15.8 million in profit; equating to earnings per share at $0.35. Comparing these figures year over year, the growth is above 500%! Adjusted earnings per share came in at $0.20; above expectations of $0.17. Also, the FXCM Inc. (FXCM) announced that they had paid $12 back to Leucadia National Corp (LUK); bringing their outstanding debt total to $276 million. FXCM Inc. (FXCM) also announced that it is in the process of selling non-core assets in an effort to expedite the payment of remaining debt.
How FXCM Inc. (FXCM) Stocks Reacted To The Positive News
As you would guess would happen after any positive news breaks about a stock, the value of FXCM Inc. (FXCM) shares climbed. However, in this particular case, the jump was incredible. By 10:20, the company’s stock had risen by more than 20%. Throughout the rest of the day however, the rally definitely died down and the stock went on a slow, yet steady downtrend as day traders exited. Nonetheless, the stock still ended with incredibly impressive gains; closing the day off at $2.58 per share with a gain of 20% for the day.
What Can We Expect To See From FXCM Inc. (FXCM) In The Near Future?
While I’m not expecting the market to explode over the weekend, nor that we’ll see another 20% gain day on Monday, I do expect to see the stock moving in the positive direction overall. Before the decline in January, the stock was trading at well above $16 per share. While I understand the reason behind the decline (debt!), I think that with yesterday’s earnings report, FXCM Inc. (FXCM) has proven that the worst is now behind them. Following their financial struggles, the company has bounced back to produce incredible revenue and net profit figures; using the momentum to pay the debts they needed to survive. Come back stories don’t get much better than that my friends!
What Do You Think?
Do you think that we’ll continue to see gains from FXCM Inc. (FXCM) moving into next week and over the long run? Why or why not? Let us know in the comments below!