BGC Group (BGCP) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenues of $561.1 million, up 16.2% year-over-year, with growth across all asset classes and geographies.

• Pre-tax adjusted earnings rose 24.4% to $126.7 million; adjusted EBITDA increased 11.4% to $151.4 million.

• Post-tax adjusted earnings increased 34.5% to $126.6 million; adjusted EPS up 36.8% to $0.26.

• Closed acquisition of Sage Energy Partners and agreed to acquire OTC Global Holdings, expected to add $450 million+ in annual revenue and be immediately accretive.

• FMX platforms delivered record volumes, with FMX Futures Exchange launched and strong Fenics performance.

Financial highlights

• Total brokerage revenues grew 15.1% to $500.6 million; rates revenues up 19.6% to $174.3 million; ECS up 21.3% to $112.9 million; FX up 15.4% to $92.1 million.

• Data, network, and post-trade revenues increased 17.5% to $32.7 million; interest and dividend income rose 66.9% to $16.9 million.

• Americas revenues up 19%, EMEA up 16.5%, APAC up 8.3%.

• GAAP net income for fully diluted shares was $14.2 million, down 11.2% year-over-year; GAAP income from operations before income taxes was $19.7 million.

• Total expenses under GAAP increased 17.9% to $548.0 million, mainly due to higher compensation and non-compensation costs.

Outlook and guidance

• Q4 2024 revenue guidance: $545–$595 million; pre-tax adjusted earnings guidance: $122–$138 million.

• Full-year 2024 revenue guidance: $2,235–$2,285 million, up 10–13% year-over-year; pre-tax adjusted earnings: $510–$526 million, up 15–19%.

• Full-year 2024 revenue growth expected at 11%, with organic growth around 10%.

• Fully diluted weighted-average share count expected to remain flat for full year 2024.

• Quarterly dividend of $0.02 per share declared, payable December 4, 2024.