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BGC Partners (BGCP) Affirms Q4 Revenue, Pre-Tax Earnings View

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Like always, BGC Partners, Inc. BGCP has provided update for its fourth-quarter 2020 outlook.

Along with its third-quarter 2020 financial results, the company, on Oct 28, had provided fourth-quarter outlook. BGC Partners projected revenues to be $440-$490 million, while pre-tax adjusted earnings were anticipated to be $65-$85 million. In fourth-quarter 2019, the company had generated revenues of $487.2 million and pre-tax adjusted earnings of $73.2 million.

This time, the above-mentioned guidance is being maintained by BGC Partners. This is a turnaround from the past two quarters, when the company lowered the guidance for both revenues and pre-tax earnings. This was mainly due to the subdued operating backdrop that led to a fall in industry volumes.

Also, the company expected adjusted earnings tax rate in the range of 10-12%.

The Zacks Consensus Estimate for the fourth-quarter sales is pegged at $460.5 million, indicating a decline of 5.5% from the year-ago reported number. The consensus estimate for earnings is 12 cents per share, on par with the prior-year level.

Notably, in the first three quarters of 2020, BGC Partners recorded revenues of $1.6 billion, marking year-over-year fall of 2.5%. Lower brokerage revenues largely hurt the top line.

Similar to other brokerage firms like Charles Schwab SCHW, LPL Financial LPLA and Tradeweb TW, BGC Partners is expected to continue witnessing a gradual rise in trading volume going forward. This is likely to support the company’s revenues.

Shares of BGC Partners have jumped 49.1% over the past six months, outperforming the industry’s rally of 41.7%.

Currently, BGC Partners carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
Tradeweb Markets Inc. (TW) : Free Stock Analysis Report
LPL Financial Holdings Inc. (LPLA) : Free Stock Analysis Report
BGC Partners, Inc. (BGCP) : Free Stock Analysis Report
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