NEW YORK (TheStreet) -- Shares of RCS Capital (RCAP) were falling 10.5% to $10.09 Tuesday after the investment brokerage firm missed analysts' estimates for earnings and revenue in the fourth quarter.
RCS Capital reported earnings of 14 cents a share for the fourth quarter, missing analysts' estimates of 18 cents a share for the quarter. Revenue fell 26.6% year over year to $504.03 million for the quarter, well below analysts' estimates of $604.86 million.
Looking forward to full year 2015, RCS Capital said it expects to report earnings of $1.43 to $1.59 a share. Analysts expect the company to report earnings of $1.63 a share for the year.
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The company said it expects to report an EBITDA of about $244 million to $268 million for full year 2015, up from it EBITDA of $213.4 million in 2014.
RCS Capital CEO Michael Weil said, "The company is well-positioned to capitalize on favorable economic trends in the U.S. which should drive our growth for many years. Our Company plays an essential role in meeting the financial needs of the over two million retail clients we serve as they plan for retirement and navigate ever increasing complex financial markets and market turbulence."
TheStreet Ratings team rates RCS CAPITAL CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate RCS CAPITAL CORP (RCAP) a SELL. This is driven by a number of negative factors, 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 unimpressive growth in net income, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."
You can view the full analysis from the report here: RCAP Ratings Report