Source: Investing 12/31/2024, 16:06
New York – BGC Group Published, Inc. (NASDAQ: BGC), a global market services and financial technology company with a market cap of $4.28 billion, today affirmed its financial outlook for the fourth quarter ended December 31, 2024. The company has delivered strong performance this year, with a 24.5% YTD return and significant 13.1% revenue growth.
Investing Pro subscribers have access to more than 30 additional key metrics and exclusive insights into BGC’s performance and outlook. The Company reaffirmed its previously stated revenue and adjusted earnings before taxes guidance in its October 31, 2024 financial results release.
BGC uses non-GAAP financial metrics, such as Adjusted Earnings and Adjusted EBITDA, to evaluate its business performance, which exclude certain non-cash items and other expenses that do not involve cash transactions.
The Company maintains a strong financial position with a “Good” overall financial health score according to InvestingPro analysis, supported by an impressive gross profit margin of 89.6%. These metrics also adjust for certain gains and charges that management believes do not reflect the Company’s underlying operating performance.
The non-GAAP metrics exclude stock-based compensation charges, such as restricted stock unit amortizations, restricted stock grants, and other stock-based awards. BGC believes that excluding these items provides a clearer understanding of the Company’s financial performance and better reflects its ongoing operations.
Adjusted earnings, in particular, is a measure that BGC takes into account when managing its business, as it excludes non-cash items and expenses that are not dilutive to existing shareholders. Calculate adjusted earnings by taking the most comparable GAAP measures and adjusting for compensation and non-compensation expenses, along with other income.
The company also provided a rationale for using adjusted earnings, noting that these figures exclude items that are non-cash in nature, relate to future benefits, or do not reflect BGC’s ongoing operations.
BGC’s adjusted EBITDA is another non-GAAP measure that the company provides, which adds items such as taxes, interest expense, and depreciation to net income (loss) available to common stockholders. This measure aims to eliminate the effects of financing, income taxes, and capital expenditures when assessing the company’s operating performance.
The reaffirmation of the fourth quarter outlook indicates stability in BGC’s financial outlook, although some GAAP items are difficult to accurately forecast. The company did not provide specific guidance for other GAAP results, citing the difficulty of accurately forecasting stock-based compensation charges and other non-recurring items prior to the end of each period.
This announcement comes from a press release and aims to provide investors with insights into BGC’s financial metrics and management’s approach to evaluating the company’s performance. Analysts maintain a positive outlook on BGC, with a consensus price target of $12.00, indicating upside potential from the current price of $8.92. For comprehensive analysis and detailed valuation metrics, investors can access BGC’s full research report, one of more than 1,400 company reports available exclusively on InvestingPro.
In other recent news, BGC Group reported record third-quarter revenue of $561 million, up 16% year-over-year, along with a significant 24% increase in adjusted pre-tax earnings, which reached $126.7 million. These gains were attributed to strategic acquisitions and the successful launch of the FMX Futures Exchange.
The company completed the acquisitions of OTC Global Holdings and Sage Energy Partners, which are expected to add more than $450 million in annual revenue. For the fourth quarter, BGC expects revenue to be in the range of $545 million to $595 million, with adjusted earnings before taxes estimated to be between $122 million and $138 million.
In a move to enhance its financial flexibility, BGC Group has amended its existing credit agreement, increasing its revolving credit commitments to a total of $700 million. This strategic financial maneuver should provide the company with increased liquidity to support its current and future initiatives.
In addition, BGC Group announced the appointment of Mike Whittaker as its global Chief Information Officer (CIO). Whittaker, who has over four decades of experience in financial services and technology, is expected to drive innovation and drive the company’s growth. These are the latest developments for BGC Group.
