FXCM Stock Gains in After-Hours Trading on Earnings Beat
NEW YORK (TheStreet) -- Shares of FXCM (FXCM) were gaining 5.6% to $2.27 after-hours Thursday after the online foreign exchange market broker beat analysts' estimates for earnings in the fourth quarter.
FXCM reported earnings of 20 cents a share for the fourth quarter, beating analysts' estimates of 17 cents a share for the quarter. Revenue grew 18.6% year over year to $127.57 million for the quarter, below analysts' estimates of $129.92 million.
The company also announced that it repaid $12 million of the $300 million in financing it received from Leucadia National (LUK) on Jan. 16 to cover negative equity balances that came as a result of the volatility of the Swiss franc. FXCM said it is "in the process of disposing of non-core assets to further repay a portion of the debt."
TheStreet Ratings team rates FXCM INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate FXCM INC (FXCM) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, disappointing return on equity, poor profit margins and weak operating cash flow."
You can view the full analysis from the report here: FXCM Ratings Report