StoneX Group Inc. Reports Fiscal 2020 Fourth Quarter Financial Results

Rhea-AI Summary

StoneX Group Inc. (SNEX) reported a 19% increase in quarterly operating revenues, totaling $342.1 million, for the fourth quarter of fiscal 2020. Quarterly net income surged by 185% to $77.4 million, while diluted EPS reached $3.90 per share. The company highlighted record results across nearly all business areas, fueled by a strategic acquisition of Gain Capital Holdings. Despite pandemic challenges, the firm noted significant non-operating income during the quarter, enhancing its operational position and future growth potential.

Positive

• Quarterly net income increased by 185% to $77.4 million.
• Diluted EPS rose to $3.90 per share.
• Operating revenues grew 19% to $342.1 million.
• Record results across nearly all business areas.
• Strategic acquisition of Gain Capital enhances scale and earnings.

Negative

• Interest income decreased by 60% year-over-year.
• Interest expense on corporate funding increased by 311%.

Quarterly Operating Revenues of $342.1 million, up 19%

Quarterly Net Income of $77.4 million, up 185%

Quarter Diluted EPS of $3.90 per share, ROE of 42.5%

NEW YORK, Dec. 09, 2020 (GLOBE NEWSWIRE) -- StoneX Group Inc. (the ‘Company’; NASDAQ: SNEX), a diversified global brokerage and financial services firm providing execution, risk management and advisory services, market intelligence and clearing services across multiple asset classes and markets around the world, today announced its financial results for the fiscal year 2020 fourth quarter ended September 30, 2020.

Sean M. O’Connor, CEO of StoneX Group Inc., stated, “Despite the unprecedented pandemic and its impact on the economy and markets in general, fiscal 2020 was a year of significant milestones and accomplishments for our company.  We achieved record results on a consolidated basis and in nearly every business area, completed several transactions, including the major strategic acquisition of Gain Capital Holdings, Inc. (“Gain”) and rebranded the company with an eye toward our future. In addition to record annual earnings from our on-going operations, we realized a significant amount of non-operating income during the quarter, primarily resulting from the gain on acquisition relating to the Gain transaction. We are well placed to take advantage of the continued consolidation of our industry with greater scale and earnings power and more diversity in terms of products and customers.”

StoneX Group Inc. Summary Financials

Consolidated financial statements for the Company will be included in our Annual Report on Form 10-K to be filed with the SEC. The Annual Report on Form 10-K will also be made available on the Company’s website at www.stonex.com.

	Three Months Ended September 30,												Year Ended September 30,
(Unaudited) (in millions, except share and per share amounts)	2020				2019				%  Change				2020				2019				%  Change
Revenues:
Sales of physical commodities	$	13,959.8			$	11,005.7			27		%		$	52,899.2			$	31,830.3			66		%
Principal gains, net	180.2				110.4				63		%		622.2				415.8				50		%
Commission and clearing fees	103.7				90.3				15		%		403.6				372.4				8		%
Consulting, management and account fees	20.4				20.7				(1	)	%		83.7				79.6				5		%
Interest income	20.8				52.5				(60	)	%		130.9				198.9				(34	)	%
Total revenues	14,284.9				11,279.6				27		%		54,139.6				32,897.0				65		%
Cost of sales of physical commodities	13,942.8				10,992.7				27		%		52,831.3				31,790.9				66		%
Operating revenues	342.1				286.9				19		%		1,308.3				1,106.1				18		%
Transaction-based clearing expenses	57.1				45.0				27		%		222.5				183.5				21		%
Introducing broker commissions	34.0				27.7				23		%		113.8				114.7				(1	)	%
Interest expense	10.0				37.2				(73	)	%		80.4				142.0				(43	)	%
Interest expense on corporate funding	14.8				3.6				311		%		23.6				12.7				86		%
Net operating revenues	226.2				173.4				30		%		868.0				653.2				33		%
Compensation and other expenses:
Variable compensation and benefits	81.1				58.5				39		%		296.8				211.6				40		%
Fixed compensation and benefits	64.4				46.7				38		%		221.9				181.5				22		%
Trading systems and market information	12.9				10.3				25

FAQ

What were StoneX Group's operating revenues for Q4 2020?

StoneX Group reported operating revenues of $342.1 million for Q4 2020.

How much did net income increase for StoneX Group in Q4 2020?

Net income for Q4 2020 increased by 185% to $77.4 million.

What was the diluted EPS for StoneX Group for the fourth quarter of 2020?

The diluted EPS for StoneX Group in Q4 2020 was $3.90 per share.

What strategic acquisition did StoneX Group complete recently?

StoneX Group completed the strategic acquisition of Gain Capital Holdings.

How did the pandemic impact StoneX Group's business in 2020?

Despite pandemic challenges, StoneX Group achieved record results and significant milestones in 2020.