StoneX Group (Nasdaq: SNEX) published its financials for the first quarter of the fiscal year 2022, which runs between October 2021 and December 2021, reporting an overall revenue jump of 55 percent to more than $14.3 billion.
The company, which offers diversified global brokerage and financial services, generated $450.5 million in operating revenue, along with a net income of $41.7 million, which is 114 percent higher than the previous year. The diluted earnings per share (EPS) came in 108 percent higher at $2.04.
FX/CFDs Demand Stays High
StoneX acquired Gain Capital in 2020 and provides a wide array of services in the forex and contracts for differences (CFDs) markets. This business segment generated operating revenue of $72.2 million in the three month period, compared to the previous year’s $59.8 million. That was an increase of 21 percent.
The company highlighted that a $12.1 million increase in operating revenue derived from retail FX/CFD in its retail segment contributed to the increase in operating income.
However, StoneX faced some currency risks due to its exposure to Gain’s UK domiciled subsidiaries. There was a $2.7 million foreign currency loss in the quarter as Gain U.K. subsidiaries had a functional currency of the British pound.
“We delivered strong results in our fiscal first quarter with a diluted EPS of $2.04, an ROE of 18.0% on book value and 20% on tangible book value,” said Sean M. O’Connor, StoneX Group’s CEO.
“We continued to experience higher volumes across the board from increased client engagement and market share gains. Increased market volatility and the prospect of rising interest rates provide additional catalysts for continued growth.”
