Like always, BGC Partners, Inc. has provided update for its fourth-quarter 2020 outlook.
Along with its third-quarter 2020 financial results, the company, on Oct 28, had provided fourth-quarter outlook. BGC Partners projected revenues to be $440-$490 million, while pre-tax adjusted earnings were anticipated to be $65-$85 million. In fourth-quarter 2019, the company had generated revenues of $487.2 million and pre-tax adjusted earnings of $73.2 million.
This time, the above-mentioned guidance is being maintained by BGC Partners. This is a turnaround from the past two quarters, when the company lowered the guidance for both revenues and pre-tax earnings. This was mainly due to the subdued operating backdrop that led to a fall in industry volumes.
Also, the company expected adjusted earnings tax rate in the range of 10-12%.
The Zacks Consensus Estimate for the fourth-quarter sales is pegged at $460.5 million, indicating a decline of 5.5% from the year-ago reported number. The consensus estimate for earnings is 12 cents per share, on par with the prior-year level.
Notably, in the first three quarters of 2020, BGC Partners recorded revenues of $1.6 billion, marking year-over-year fall of 2.5%. Lower brokerage revenues largely hurt the top line.
Similar to other brokerage firms like Charles Schwab (SCHW - Free Report) , LPL Financial (LPLA - Free Report) and Tradeweb (TW - Free Report) , BGC Partners is expected to continue witnessing a gradual rise in trading volume going forward. This is likely to support the company’s revenues.
Shares of BGC Partners have jumped 49.1% over the past six months, outperforming the industry’s rally of 41.7%.
Currently, BGC Partners carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Like always, BGC Partners, Inc. has provided update for its fourth-quarter 2020 outlook.
Along with its third-quarter 2020 financial results, the company, on Oct 28, had provided fourth-quarter outlook. BGC Partners projected revenues to be $440-$490 million, while pre-tax adjusted earnings were anticipated to be $65-$85 million. In fourth-quarter 2019, the company had generated revenues of $487.2 million and pre-tax adjusted earnings of $73.2 million.
This time, the above-mentioned guidance is being maintained by BGC Partners. This is a turnaround from the past two quarters, when the company lowered the guidance for both revenues and pre-tax earnings. This was mainly due to the subdued operating backdrop that led to a fall in industry volumes.
Also, the company expected adjusted earnings tax rate in the range of 10-12%.
The Zacks Consensus Estimate for the fourth-quarter sales is pegged at $460.5 million, indicating a decline of 5.5% from the year-ago reported number. The consensus estimate for earnings is 12 cents per share, on par with the prior-year level.
Notably, in the first three quarters of 2020, BGC Partners recorded revenues of $1.6 billion, marking year-over-year fall of 2.5%. Lower brokerage revenues largely hurt the top line.
Similar to other brokerage firms like Charles Schwab (SCHW - Free Report) , LPL Financial (LPLA - Free Report) and Tradeweb (TW - Free Report) , BGC Partners is expected to continue witnessing a gradual rise in trading volume going forward. This is likely to support the company’s revenues.
Shares of BGC Partners have jumped 49.1% over the past six months, outperforming the industry’s rally of 41.7%.
Currently, BGC Partners carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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