Knight Capital Group – KCG – Performed well during a challenging and eventful period in the capital markets
Knight Capital Group, Inc. (NYSE: KCG) reported consolidated earnings of $3.3 million, or $0.04 per diluted share, for the second quarter of 2012. The results included pre-tax trading losses of $35.4 million related to the Facebook IPO, equivalent to a loss of $0.23 per diluted share, as well as a $10.0 million pre-tax investment gain in the Corporate and Other segment, equivalent to a gain of $0.07 per diluted share.
For the second quarter of 2011, KCG reported consolidated earnings of $17.6 million, or $0.19 per diluted share.
Revenues for the second quarter of 2012 were $289.3 million, compared to $326.0 million for the second quarter of 2011.
“In the second quarter of 2012, Knight performed well during a challenging and eventful period in the capital markets,” said Thomas M. Joyce, Chairman and Chief Executive Officer, Knight Capital Group. “Consolidated revenues remained fairly strong notwithstanding declines in retail and institutional trading activity. Pre-tax earnings were $30.8 million during the quarter, or $0.20 per diluted share, excluding the trading losses from the Facebook IPO and one-time investment gain. We are evaluating all legal rights and remedies in connection with the Facebook IPO.”
“Continuing operations” includes the company’s Market Making, Institutional Sales and Trading, Electronic Execution Services, and Corporate and Other segments. Market Making consists of all global market making across equities, fixed income, futures and options as well as the company’s activities as a Designated Market Maker at the NYSE. Institutional Sales and Trading includes full-service institutional research, sales and trading as well as equity and debt capital markets, reverse mortgage origination and securitization, and asset management. Electronic Execution Services includes Knight Direct, Knight Hotspot FX and Knight BondPoint. Corporate and Other includes strategic investments primarily in financial services-related ventures, futures execution and custody services, clearing and settlement activity, corporate overhead expenses and all other income and expenses that are not attributable to the other reporting segments.
About Knight – KCG
Knight Capital Group (KCG) is a global financial services firm that provides access to the capital markets across multiple asset classes to a broad network of clients, including broker-dealers, institutions and corporations. KCG is headquartered in Jersey City, N.J. with a global presence across the Americas, Europe, and the Asia Pacific regions.
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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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