StoneX Group’s Operating Revenues Jump 34% in Q3 FY21

StoneX Group, a leading global brokerage and financial services firm, released its financial results for the third quarter of the fiscal year 2021 (FY21) today. The company posted strong growth in operating revenues.

According to the results, StoneX saw operating revenues of $431.5 million in the quarter ended 30 June 2021, which is 34% higher compared to the same period last year. The company’s net operating revenues touched $298 million in the latest quarter, compared to $227 million in Q3 of FY20.

However, StoneX reported a 7% drop in its net income during Q3 of FY21 as the number reached $34.2 million compared to $36.6 million in the same period last year. In terms of earnings per share (EPS), StoneX posted the quarterly diluted EPS of $1.67, compared to $1.87 in Q3 of FY20.

Commenting on the latest financial results, Sean M. O’Connor, CEO of StoneX Group, said: “We continued to deliver strong financial results in our fiscal third quarter with a 34% increase in operating revenues and an ROE in excess of our 15% target. I am especially pleased that our year-to-date earnings are up 18% versus last year's exceptional results which were buoyed by the extreme market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term resulting from the onset of the COVID-19 pandemic in early 2020.”

In February 2021, StoneX announced the selection of Genesis, a financial markets software provider, to digitize middle-office workflows for its fixed income and Equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term trading business.

Impact of Acquisition

Last year, StoneX completed the acquisition of GAIN Capital. In the latest announcement, the company highlighted the positive impact of the recent acquisition on its financial numbers. “The results of the three months ended 30 June 2021 include a gain of $3.3 million related to the acquisition of Gain in the fourth quarter of fiscal 2020, due to an adjustment to the final liabilities assumed, resulting in an adjustment from the initially determined values as of August 1, 2020. We also recognized a net gain on the disposal of fixed assets in the three months ended June 30, 2021,” the company added.