Knight Capital 3Q Profit Up 29 Percent
biz.yahoo.com
Wednesday October 18, 7:07 am ET
Knight Capital 3Q Profit Up 29 Percent on Trade Execution Revenue, Asset Management Fees
JERSEY CITY, N.J. (AP) -- Financial services company Knight Capital Group Inc. on Wednesday said earnings rose 29 percent in the third quarter on improved performance in its two core businesses.
Net income rose to $31.5 million, or 30 cents per share, from $24.4 million, or 23 cents per share, a year ago. Last year's results reflect a pretax charge of $5.5 million relating to the costs associated with excess real estate capacity.
Knight Capital, which provides asset management and trade execution services, said revenue increased to $210 million from $184.1 million.
Analysts surveyed by Thomson Financial were expecting earnings of 20 cents per share on revenue of $173.5 million.
The company's global markets segment posted a revenue increase of about 13 percent and a jump in pretax operating profit of 12 percent despite what the company termed an "historically weak" trading environment, reflecting lower trading volumes on many major exchanges. "Given these poor trading dynamics, Knight's revenue capture was aided by our automated trading systems," the company said.
Deephaven Capital, the company's asset management business, saw fees increase to $50.5 million from $42 million, and pretax operating profit rose to $18.4 million from $15.7 million. Assets under management rose to $3.8 billion from $3.4 billion. |
