Added NITE 8.76 +.53 on super earnings: Knight 3Q Earnings Beat Expectations
Wednesday October 19, 8:19 am ET
Knight Capital Group Posts $24.4 Million in Third-Quarter Profit, Reverses Year-Ago Loss
JERSEY CITY, N.J. (AP) -- Market maker Knight Capital Group Inc. on Wednesday posted a sharply better-than-expected profit for the third quarter, reversing a year-ago loss on improved equity trading and asset management.
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The report sent Knight's stock climbing in early trading, with shares up 77 cents, or 9.4 percent, at $9 in premarket activity.
Quarterly income amounted to $24.4 million, or 23 cents per share, compared with a loss of $1.3 million, or 1 cent per share, the year before. Excluding a real-estate charge, latest-quarter earnings from continuing operations would have been $27.2 million, or 26 cents per share.
That compares with the average estimate for earnings of 13 cents per share from analysts surveyed by Thomson Financial.
Last year, Knight's $6.6 million loss from ongoing business was partially countered by a gain from discontinued operations of $5.3 million from selling its derivative markets unit in December.
Revenue totaled $184.1 million, up 81 percent from $101.8 million a year earlier, Knight said. By segment, its equity markets division grew revenue 36 percent to $129.4 million, while asset-management fees increased sixfold to $42 million.
Knight Capital also said its board approved a $25 million increase in the company's share repurchase program, to $345 million from $320 million.
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