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BGC PARTNERS, INC. Reports Operating Results (10-Q)

November 04, 2011 | About:
10qk

10qk

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BGC PARTNERS, INC. (BGCP) filed Quarterly Report for the period ended 2011-09-30.

Bgc Partners Inc has a market cap of $812.4 million; its shares were traded at around $6.6 with a P/E ratio of 8.3 and P/S ratio of 0.6. The dividend yield of Bgc Partners Inc stocks is 10.3%. Bgc Partners Inc had an annual average earning growth of 2% over the past 10 years.

Highlight of Business Operations:

For the three months ended September 30, 2011, the Company had a loss from operations before income taxes of $4.5 million compared to income from operations before income taxes of $26.4 million, a decrease of $30.9 million from the year earlier period. Total revenues increased approximately $53.4 million and total expenses increased approximately $84.3 million.

Total revenues were $379.9 million and $326.5 million for the three months ended September 30, 2011 and 2010, respectively, representing a 16.4% increase. Total revenues were $1,109.5 million and $1,009.4 million for the nine months ended September 30, 2011 and 2010, respectively, representing a 9.9% increase. The main factors contributing to these increases were:

Total brokerage revenues increased by $64.2 million, or 22.0%, for the three months ended September 30, 2011 as compared to the three months ended September 30, 2010. Commission revenues increased by $52.6 million, or 25.2%, for the three months ended September 30, 2011 as compared to the three months ended September 30, 2010. Principal transactions revenues increased by $11.6 million, or 13.9%, for the three months ended September 30, 2011 as compared to the three months ended September 30, 2010.

Total brokerage revenues increased by $109.5 million, or 11.8%, for the nine months ended September 30, 2011 as compared to the nine months ended September 30, 2010. Commission revenues increased by $100.5 million, or 15.6%, for the nine months ended September 30, 2011 as compared to the nine months ended September 30, 2010. Principal transactions revenues increased by $9.0 million, or 3.1%, for the nine months ended September 30, 2011 as compared to the nine months ended September 30, 2010.

Compensation and employee benefits expense increased by $22.5 million, or 3.4%, for the nine months ended September 30, 2011 as compared to the nine months ended September 30, 2010. This increase was primarily driven by an $84.5 million charge recorded in the nine months ended September 30, 2011, related to the granting of exchangeability of limited partnership units as compared to a $40.9 million charge recorded in the nine months ended September 30, 2010, related to the redemption of limited partnership units and founding/working partner units. The year-on-year growth in brokerage revenues and the corresponding increase in compensation for the period also contributed to this increase. The granting of exchangeability related to the redemption of limited partnership units has no effect on the Companys fully diluted share count.

Read the The complete Report

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