FXCM Stock Is Up Today on Earnings Beat
NEW YORK (TheStreet) -- Shares of FXCM (FXCM) were gaining 13.5% to $2.44 Friday after the online foreign exchange broker beat analysts' estimates for earnings in the fourth quarter.
FXCM reported earnings of 20 cents a share for the fourth quarter, above analysts' estimates of 17 cents a share for the quarter. The company reported revenue of $127.57 million for the quarter, an 18.6% increase from the year-ago quarter, but below analysts' estimates of $129.92 million.
The online foreign exchange broker said that it repaid $12 million of the $300 million in financing it received from Leucadia National (LUK) on Jan. 16 to cover the negative equity balance caused by "unprecedented volatility" in the Swiss franc on Jan. 15. 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