NASDAQ$SNEX

StoneX Group Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Achieved significant growth in net income and operating revenues, driven by increased customer demand and market volatility.

StoneX Group Inc. reported a strong Q3 2020 with a 14% increase in operating revenues to $322.6 million and a 125% increase in net income to $36.6 million, resulting in a diluted EPS of $1.87 and an ROE of 21.9%. The results reflect the company's ability to navigate unprecedented market volatility and capitalize on opportunities in equity and debt capital markets, as well as precious metals.

  • Operating revenues increased by 14% to $322.6 million, driven by growth in securities and physical commodities segments.
  • Net income increased by 125% to $36.6 million, reflecting improved profitability.
  • Diluted earnings per share (EPS) reached $1.87, indicating strong financial performance.
  • The company closed the acquisition of Gain Capital Holdings, Inc. after the quarter end.

Headline financials

Total Revenue

$8.24B

Previous: $7.87B+4.7%
EPS (adj)

$1.25

Previous: $0.84+48.8%
Return on Equity

21.9%

No prior period
Avg. MM/FDIC sweep balances

$1.26B

No prior period
Capital Expenditures

-$5.5M

Previous: -$10.3M+46.6%
Free Cash Flow

$31.1M

Previous: $6M+418.3%
Net Income

$36.6M

Previous: $16.3M+124.5%
Operating Income

$231M

Previous: $199M+15.8%
Gross Profit

$323M

Previous: $283M+13.8%
Cash & Equivalents

$465M

Previous: $345M+34.8%
Total Assets

$12.4B

Previous: $10.1B+23.2%
Stock-Based Comp

$2.4M

Previous: $2.1M+14.3%

Revenue & EPS history

StoneX · Revenue · Quarterly

$8.24B

Q3 2020+4.7%vs Q3 2019
Beat estimate in 2 of 3 quarters(67%)
ActualEstimate

Revenue by segment

StoneX · $624M total across 3 segments · Q3 2023

  • Institutional
    $381M+82.3%
  • Commercial
    $253M+48.5%
  • Eliminations
    -$10.2M

Forward guidance

StoneX anticipates headwinds from continued low short-term interest rates, but expects these to be offset by heightened volatility and the opportunity to increase market share as the industry consolidates. They also anticipate that the acquisition of Gain Capital Holdings, Inc. will be accretive both financially and strategically.

Tailwinds

  • Closing of the acquisition of Gain Capital Holdings, Inc.
  • Expectation that the Gain acquisition will be accretive financially and strategically.
  • Potential offsets to low short-term interest rates from heightened volatility.
  • Opportunity to increase market share as the industry continues to consolidate.
  • Strong revenue growth in Equity and Debt Capital Markets

Headwinds

  • Headwinds relating to continued low short-term interest rates.
  • Decline in Commercial Hedging revenues due to weather-related volatility in prior year.
  • Decline in Global Payments revenues due to global economic slowdown impact of COVID-19 pandemic
  • Decline in Asset Management revenues due to difficult market conditions in Argentina
  • Decline in Clearing and Execution Services revenues due to lower short-term interest rates

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.1%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+3.2%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+13.5%

Q2 2026

Best reaction

-15.8%

Q1 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+13.5%+9.7%+8.5%
Q1 2026+3.8%+10.5%-4.5%
Q4 2025+6.1%+7.9%+16.7%
Q2 2025-6.7%-5.3%-9.5%
Q1 2025+8.0%+7.8%+3.2%
Q4 2024+5.7%+5.4%-3.2%
Q3 2024+3.2%+4.0%+8.7%
Q2 2024+3.0%-1.8%-4.4%
Q1 2024-1.9%+1.2%+4.5%
Q4 2023-7.7%-10.6%+0.0%
Q3 2023+5.5%+7.0%+1.2%
Q2 2023-13.8%-12.9%-12.2%
Q1 2023+12.9%+17.6%+15.1%
Q4 2022+5.9%+4.5%+2.7%
Q3 2022+2.8%+2.9%+2.2%
Q2 2022+8.7%+5.5%+13.0%
Q1 2022+11.4%+10.8%+6.3%
Q4 2021-15.8%-7.2%-7.3%
Q3 2021-1.1%-1.8%+2.4%
Q2 2021+10.6%+10.8%+6.4%
Q1 2021-2.1%-6.5%+3.1%
Q4 2020-14.6%-21.3%-4.2%
Q3 2020+3.1%+4.6%-1.3%
Q2 2020+13.4%+4.0%+50.7%
Q1 2020+1.7%-0.9%-17.4%
Q4 2019+4.2%+19.2%+20.7%
Q3 2019+1.3%+2.4%+9.8%
Q2 2019-6.0%-6.7%-12.9%
Q1 2019-3.5%-0.4%+1.8%
Q4 2018+0.8%-3.7%-5.7%
Q3 2018+0.0%-0.9%+1.4%
Q2 2018+2.0%+1.8%+11.9%
Q1 2018-1.9%-1.1%+12.5%
Q4 2017-5.1%-2.7%+0.4%
Q3 2017-2.1%-5.7%-12.1%
Q2 2017-7.0%-4.6%-0.9%
Q1 2017-1.0%+1.8%+2.1%
Q4 2016-6.8%-5.5%-13.1%
Q3 2016+9.3%+10.2%+28.5%
Q2 2016-1.8%
Q1 2016-3.3%
Q4 2015-4.1%
Q3 2015-5.1%
Q2 2015+5.4%
Q1 2015+3.2%
Q4 2014+1.3%
Q3 2014-3.3%
Q2 2014+1.0%
Q1 2014+3.0%
Q4 2013+0.9%
Q3 2013-1.7%
Q2 2013-7.7%
Q1 2013-1.1%
Q4 2012-2.7%
Q3 2012-2.8%
Q2 2012-6.8%
Q1 2012-0.6%
Q1 2011-15.8%
Q4 2011+1.8%
Q2 2011+1.8%
Q4 2009+1.8%
Q3 2010+1.6%
Q3 2011+1.6%
Q4 2010+1.6%
Q2 2010-2.3%

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