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FXCM (FXCM) Up after Strong Results

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FXCM Inc. (NYSE:FXCM) shares are up over 16% in morning trade and trade close to a 52 week high after the company reported revenues and earnings for its fourth quarter, ended December 31, 2011 above analyst forecasts. The strong results were driven by strong growth in retail and institutional trading volumes.

FXCM (FXCM) said revenues for the fourth quarter of 2011 were up 13% to $108.8 million, compared to $96.1 million for the quarter ended December 31, 2010. This exceeded analyst forecasts of $104.3 million.

Adjusted Pro Forma Net Income was $20.7 million for the fourth quarter 2011, compared to $18.1 million, an increase of 14%. The company reported adjusted earnings per share for the fourth quarter of 2011 of $0.28 per share on a fully exchanged, fully diluted basis. This is up 17% from the $0.24 per share reported in the year ago period. This exceeded analyst forecasts by 11 cents a share.


FXCM (FXCM) witnessed a tripling of its institutional trading volumes, which stood at $429 billion for the quarter. Retail trading volumes rose 16 percent to $972 billion.

“2011 was a strong year for FXCM. We grew our active retail account base by 20% to 163,094 accounts, increased retail customer trading volume by 19% to a record $3.8 trillion, increased institutional customer trading volume by 56% to a record $1.2 trillion and closed two acquisitions in Japan, considerably increasing our position in that region, the world’s largest retail FX market,” said Drew Niv, Chief Executive Officer.

“We are also pleased with February’s metrics. February average daily volume of $16.5 billion in our retail business was the third highest in FXCM history – helped by our Japanese business and solid levels of client profitability in the month.”

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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