Valuation Update With 7 Day Price Move • Jun 09
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to US$4.79, the stock trades at a trailing P/E ratio of 45.6x. Average forward P/E is 13x in the Capital Markets industry in the US. Total returns to shareholders of 72% over the past three years. Announcement • May 23
BGC Partners, Inc. announced that it expects to receive $350 million in funding BGC Partners, Inc. announced a private placement of 8.000% senior notes for the gross proceeds of $350 million on May 22, 2023. The notes will pay interest semi-annually at a rate of 8% per annum, on each May 25 and November 25, beginning on November 25, 2023. The maturity date of notes is May 25, 2028. The notes were offered and sold in a private offering exempt from the registration requirements under the Securities Act of 1933, as amended . The transaction is expected to close on May 25, 2023. The transaction is subject to approval of customary conditions. Upcoming Dividend • May 09
Upcoming dividend of US$0.01 per share at 1.0% yield Eligible shareholders must have bought the stock before 16 May 2023. Payment date: 31 May 2023. Payout ratio is a comfortable 36% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of American dividend payers (5.1%). Lower than average of industry peers (2.9%). Announcement • May 05
BGC Partners, Inc. Provides Revenue Guidance for the Second Quarter of 2023 BGC Partners, Inc. provided revenue guidance for the second quarter of 2023. For the quarter, the company expected revenues to be in the range of $450 million - $500 million. Reported Earnings • May 03
First quarter 2023 earnings released: EPS: US$0.051 (vs US$0.071 in 1Q 2022) First quarter 2023 results: EPS: US$0.051 (down from US$0.071 in 1Q 2022). Revenue: US$517.1m (up 5.1% from 1Q 2022). Net income: US$19.0m (down 27% from 1Q 2022). Profit margin: 3.7% (down from 5.3% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 8.3% growth forecast for the Capital Markets industry in the US. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Price Target Changed • Apr 26
Price target increased by 9.7% to US$8.50 Up from US$7.75, the current price target is provided by 1 analyst. New target price is 94% above last closing price of US$4.39. Stock is up 19% over the past year. The company posted earnings per share of US$0.13 last year. Valuation Update With 7 Day Price Move • Apr 06
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to US$4.44, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 13x in the Capital Markets industry in the US. Total returns to shareholders of 55% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$1.84 per share. Upcoming Dividend • Mar 09
Upcoming dividend of US$0.01 per share at 0.8% yield Eligible shareholders must have bought the stock before 16 March 2023. Payment date: 31 March 2023. Payout ratio is a comfortable 31% and this is well supported by cash flows. Trailing yield: 0.8%. Lower than top quartile of American dividend payers (4.4%). Lower than average of industry peers (2.6%). Reported Earnings • Feb 28
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: US$0.13 (down from US$0.33 in FY 2021). Revenue: US$1.74b (down 11% from FY 2021). Net income: US$48.7m (down 61% from FY 2021). Profit margin: 2.8% (down from 6.4% in FY 2021). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 24%. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the Capital Markets industry in the US. Over the last 3 years on average, earnings per share has increased by 47% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Announcement • Jan 28
BGC Partners, Inc. Appoints Martin Laguerre to Serve as Member of the Board BGC Partners, Inc. announced that on January 25, 2023, the Board of Directors of the Company appointed Martin Laguerre to serve as a member of the Board, effective January 25, 2023, for a term to expire at the 2023 Annual Meeting of Stockholders of the Company, or until his successor is duly elected and qualified. Mr. Laguerre was also appointed to the Audit, Compensation and Environmental, Social and Governance Committees of the Board. Mr. Laguerre, age 49, has broad experience in mergers and acquisitions, investment strategy, and finance. From 2019 to 2022, Mr. Laguerre was Executive Vice-President and Global Head of Private Equity and Managing Director Capital Solutions at Caisse de dépôt et placement du Québec (“CDPQ”), a Canadian pension fund. From 2016 to 2019, Mr. Laguerre was a Senior Principal at CPP Investment Board (formerly CPPIB), a Canadian pension fund. From 2010 to 2016, Mr. Laguerre was Managing Director at General Electric Power & Water where he was involved in the firm’s mergers and acquisitions and integration strategy for renewable energy. Prior to joining General Electric, Mr. Laguerre held various corporate roles at IPG Photonics Corporation, a U.S. manufacturer of fiber lasers, and at DLJ, Credit Suisse, and Lehman Brothers Investment Banking in New York. Representing CDPQ, Mr. Laguerre previously served as a board member of Sagen MI Canada, a Canadian mortgage insurance provider. Representing CPP Investment Board, Mr. Laguerre previously served as a board member of Cordelio Power Inc., a North American renewable energy operating company, of Auren Energia SA (formerly Votorantim Energia), a Brazilian renewable energy holding company, and of a joint venture in select North American onshore renewable power assets of Enbridge Inc. Mr. Laguerre has been a CFA Charterholder from the CFA Institute since 2000. Mr. Laguerre holds a Bachelor of Commerce from McGill University, and an MBA from the University of Chicago’s Booth School of Business. He is a Desautels’ Global Expert at McGill University’s Desautels Faculty of Management. Announcement • Jan 13
BGC Partners, Inc. to Report Q4, 2022 Results on Feb 27, 2023 BGC Partners, Inc. announced that they will report Q4, 2022 results at 8:00 AM, US Eastern Standard Time on Feb 27, 2023 Upcoming Dividend • Nov 16
Upcoming dividend of US$0.01 per share Eligible shareholders must have bought the stock before 21 November 2022. Payment date: 06 December 2022. Payout ratio is a comfortable 12% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of American dividend payers (4.3%). Lower than average of industry peers (2.4%). Reported Earnings • Nov 03
Third quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2022 results: EPS: US$0.016 (up from US$0.029 loss in 3Q 2021). Revenue: US$402.1m (down 12% from 3Q 2021). Net income: US$5.76m (up US$17.2m from 3Q 2021). Profit margin: 1.4% (up from net loss in 3Q 2021). Revenue exceeded analyst estimates by 2.4%. Earnings per share (EPS) missed analyst estimates by 80%. Revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 7.1% growth forecast for the Capital Markets industry in the US. Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Sep 27
Investor sentiment deteriorated over the past week After last week's 17% share price decline to US$3.32, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 12x in the Capital Markets industry in the US. Total loss to shareholders of 33% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$2.61 per share. Upcoming Dividend • Aug 15
Upcoming dividend of US$0.01 per share Eligible shareholders must have bought the stock before 22 August 2022. Payment date: 06 September 2022. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 0.9%. Lower than top quartile of American dividend payers (4.0%). Lower than average of industry peers (2.4%). Reported Earnings • Aug 04
Second quarter 2022 earnings: Revenues miss analyst expectations Second quarter 2022 results: Revenue: US$421.4m (down 15% from 2Q 2021). Net income: US$14.8m (down 7.0% from 2Q 2021). Profit margin: 3.5% (up from 3.2% in 2Q 2021). Revenue missed analyst estimates by 1.1%. Over the next year, revenue is forecast to grow 2.9%, compared to a 2.1% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Upcoming Dividend • May 11
Upcoming dividend of US$0.01 per share Eligible shareholders must have bought the stock before 18 May 2022. Payment date: 02 June 2022. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 1.3%. Lower than top quartile of American dividend payers (4.0%). Lower than average of industry peers (2.7%). Reported Earnings • May 03
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: US$0.071 (down from US$0.12 in 1Q 2021). Revenue: US$492.2m (down 11% from 1Q 2021). Net income: US$26.0m (down 40% from 1Q 2021). Profit margin: 5.3% (down from 7.8% in 1Q 2021). Revenue missed analyst estimates by 2.1%. Earnings per share (EPS) also missed analyst estimates by 26%. Over the next year, revenue is forecast to grow 4.1%, compared to a 3.5% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Price Target Changed • Apr 27
Price target increased to US$8.00 Up from US$7.00, the current price target is an average from 3 analysts. New target price is 117% above last closing price of US$3.69. Stock is down 35% over the past year. The company is forecast to post earnings per share of US$0.23 for next year compared to US$0.33 last year. Upcoming Dividend • Mar 01
Upcoming dividend of US$0.01 per share Eligible shareholders must have bought the stock before 07 March 2022. Payment date: 22 March 2022. Payout ratio is a comfortable 12% but the company is not cash flow positive. Trailing yield: 0.9%. Lower than top quartile of American dividend payers (3.6%). Lower than average of industry peers (2.2%). Reported Earnings • Feb 17
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: US$0.34 (up from US$0.14 in FY 2020). Revenue: US$1.95b (down 1.7% from FY 2020). Net income: US$124.0m (up 154% from FY 2020). Profit margin: 6.4% (up from 2.5% in FY 2020). Revenue missed analyst estimates by 1.0%. Earnings per share (EPS) also missed analyst estimates by 41%. Over the next year,revenue is forecast to stay flat, in line with the revenue forecast for the industry in the US. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 9% per year, which means it is performing significantly worse than earnings. Upcoming Dividend • Nov 15
Upcoming dividend of US$0.01 per share Eligible shareholders must have bought the stock before 22 November 2021. Payment date: 07 December 2021. Trailing yield: 0.8%. Lower than top quartile of American dividend payers (3.5%). Lower than average of industry peers (1.7%). Reported Earnings • Nov 06
Third quarter 2021 earnings released: US$0.029 loss per share (vs US$0.053 profit in 3Q 2020) The company reported a soft third quarter result with weaker earnings and weaker control over costs, although revenues improved. Third quarter 2021 results: Revenue: US$457.0m (up 4.9% from 3Q 2020). Net loss: US$11.4m (down 159% from profit in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 42% per year but the company’s share price has fallen by 23% per year, which means it is significantly lagging earnings. Upcoming Dividend • Aug 16
Upcoming dividend of US$0.01 per share Eligible shareholders must have bought the stock before 23 August 2021. Payment date: 07 September 2021. Trailing yield: 0.7%. Lower than top quartile of American dividend payers (3.5%). Lower than average of industry peers (1.9%). Reported Earnings • Aug 05
Second quarter 2021 earnings released: EPS US$0.048 (vs US$0.078 in 2Q 2020) The company reported a poor second quarter result with weaker earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$493.8m (down 1.6% from 2Q 2020). Net income: US$18.2m (down 35% from 2Q 2020). Profit margin: 3.7% (down from 5.6% in 2Q 2020). Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has fallen by 20% per year, which means it is significantly lagging earnings. Upcoming Dividend • May 11
Upcoming dividend of US$0.01 per share Eligible shareholders must have bought the stock before 18 May 2021. Payment date: 02 June 2021. Trailing yield: 0.7%. Lower than top quartile of American dividend payers (3.4%). Lower than average of industry peers (1.7%). Reported Earnings • May 01
First quarter 2021 earnings released: EPS US$0.12 (vs US$0.04 in 1Q 2020) The company reported a decent first quarter result with improved earnings and profit margins, although revenues were weaker. First quarter 2021 results: Revenue: US$549.7m (down 6.2% from 1Q 2020). Net income: US$43.1m (up 201% from 1Q 2020). Profit margin: 7.8% (up from 2.4% in 1Q 2020). Over the last 3 years on average, earnings per share has increased by 80% per year but the company’s share price has fallen by 24% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Apr 02
Investor sentiment improved over the past week After last week's 17% share price gain to US$5.04, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 16x in the Capital Markets industry in the US. Total loss to shareholders of 29% over the past three years. Major Estimate Revision • Mar 03
Analysts update estimates The 2021 consensus earning per share (EPS) estimate was lowered from US$0.26 to US$0.23. Revenue estimate was approximately flat at US$2.21b. Net income is expected to grow by 250% next year compared to 21% growth forecast for the Capital Markets industry in the US. The consensus price target of US$7.00 was unchanged from the last update. Share price is down by 11% to US$4.37 over the past week. Reported Earnings • Feb 25
Full year 2020 earnings released: EPS US$0.13 (vs US$0.16 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: US$1.98b (down 3.2% from FY 2019). Net income: US$48.9m (down 12% from FY 2019). Profit margin: 2.5% (down from 2.7% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 85% per year but the company’s share price has fallen by 30% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Feb 25
Revenue beats expectations, earnings disappoint Revenue exceeded analyst estimates by 0.4%. Earnings per share (EPS) missed analyst estimates by 13%. Over the next year, revenue is forecast to grow 12%, compared to a 33% growth forecast for the Capital Markets industry in the US. Valuation Update With 7 Day Price Move • Feb 13
Investor sentiment improved over the past week After last week's 16% share price gain to US$4.67, the stock is trading at a trailing P/E ratio of 36.7x, up from the previous P/E ratio of 31.7x. This compares to an average P/E of 24x in the Capital Markets industry in the US. Total return to shareholders over the past three years is a loss of 35%. Is New 90 Day High Low • Feb 13
New 90-day high: US$4.67 The company is up 29% from its price of US$3.62 on 13 November 2020. The American market is up 15% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Capital Markets industry, which is up 21% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$1.55 per share. Announcement • Jan 14
BGC Partners, Inc. to Report Q4, 2020 Results on Feb 24, 2021 BGC Partners, Inc. announced that they will report Q4, 2020 results at 8:00 AM, US Eastern Standard Time on Feb 24, 2021 Announcement • Dec 09
GFI Announces New Joint Venture with Guizhou Big Data Capital Service Centre Co., Ltd. in China GFI Asia Partners Pte. Ltd. announced that it took a majority stake in a newly established joint venture company in China, GFIGS Commercial Consulting (Shanghai) Co., Ltd. ("GFIGS"), offering OTC derivatives brokerage service. GFI's joint venture partner, Guizhou Big Data Capital Service Centre Co., Ltd. This new joint venture presents an exciting opportunity for GFI's further growth and development in China. GFI looks forward to a long and successful partnership with Guizhou Big Data Capital. Is New 90 Day High Low • Nov 21
New 90-day high: US$3.84 The company is up 58% from its price of US$2.43 on 21 August 2020. The American market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Capital Markets industry, which is up 8.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$1.28 per share. Reported Earnings • Nov 10
Third quarter 2020 earnings released: EPS US$0.053 The company reported a decent third quarter result with improved earnings and profit margins, although revenues were weaker. Third quarter 2020 results: Revenue: US$435.6m (down 14% from 3Q 2019). Net income: US$19.4m (up US$22.9m from 3Q 2019). Profit margin: 4.4% (up from net loss in 3Q 2019). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 29% per year but the company’s share price has fallen by 39% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Nov 10
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 0.9%. Earnings per share (EPS) also surpassed analyst estimates by 150%. Over the next year, revenue is forecast to grow 8.0%, compared to a 10% growth forecast for the Capital Markets industry in the US. Valuation Update With 7 Day Price Move • Nov 04
Market bids up stock over the past week After last week's 16% share price gain to US$2.90, the stock is trading at a trailing P/E ratio of 22.8x, up from the previous P/E ratio of 19.7x. This compares to an average P/E of 21x in the Capital Markets industry in the US. Total return to shareholders over the past three years is a loss of 63%. Analyst Estimate Surprise Post Earnings • Oct 30
Third-quarter earnings released: Revenue and earnings beat expectations Third-quarter revenue exceeded analyst estimates by 0.9% at US$455.0m. Earnings per share (EPS) also surpassed analyst estimates by 150% at US$0.05. Revenue is forecast to grow 7.3% over the next year, compared to a 17% growth forecast for the Capital Markets industry in the US. Reported Earnings • Oct 30
Third quarter earnings released Over the last 12 months the company has reported total profits of US$45.6m, down 5.8% from the prior year. Total revenue was US$1.99b over the last 12 months, down 1.6% from the prior year. Is New 90 Day High Low • Oct 30
New 90-day high: US$2.92 The company is up 5.0% from its price of US$2.77 on 31 July 2020. The American market is up 3.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Capital Markets industry, which is down 1.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$1.21 per share. Announcement • Oct 07
BGC Partners, Inc. to Report Q3, 2020 Results on Oct 28, 2020 BGC Partners, Inc. announced that they will report Q3, 2020 results on Oct 28, 2020 Announcement • Oct 01
BGC Partners, Inc. Provides Revenue Guidance for the Third Quarter of 2020 BGC Partners, Inc. provided revenue guidance for the third quarter of 2020. Company expects that against a backdrop of lower industry volumes across rates, foreign exchange, and credit, BGC's revenue a for the third quarter of 2020 are now expected to be between the mid-point and the low-end of the range of its previously stated outlook.