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On Monday, StoneX Group Inc. (NASDAQ: SNEX) saw its price target elevated to $102 from $83 by Jefferies analysts, while the firm’s stock rating remained at Buy. The adjustment follows StoneX’s fiscal second quarter 2025 earnings per share (EPS) of $1.41, which surpassed Jefferies’ estimate of $1.26. Currently trading at $88.63 with a P/E ratio of 15.03, InvestingPro analysis suggests the stock is slightly undervalued. The company’s stronger-than-expected performance was attributed to its Commercial and Institutional segments.
StoneX’s net operating revenues exceeded Jefferies’ projections by $31 million, contributing to the company’s impressive $121.72B in revenue. However, expenses also saw an uptick by $17 million, primarily due to variable compensation. Despite the higher costs, operating income beat expectations by $13 million. The Commercial segment outperformed estimates by $38 million, and the Institutional segment by $43 million. This was balanced by weaker results from the retail and payments divisions. The stock has demonstrated strong momentum, delivering a 72.72% return over the past year.
The company experienced a decline in operating margins, which fell to 20% compared to 23.8% in the previous quarter, with gross profit margins at 1.47%. Nevertheless, StoneX reported an adjusted return on equity (ROE) of 15.7%, a slight decrease from the 19.5% observed in the first fiscal quarter of 2025. For deeper insights into StoneX’s financial health and additional metrics, check out the comprehensive Pro Research Report available on InvestingPro.
The performance of StoneX Group’s Commercial and Institutional segments was the primary driver behind the company’s earnings beat and the subsequent price target increase by Jefferies. With a market capitalization of $4.34B and an overall financial health score of "GOOD" according to InvestingPro, the firm’s solid financial results have maintained its Buy rating and prompted a more optimistic outlook from analysts.
In other recent news, Stonex Group Inc. reported strong second-quarter earnings for 2025, with an earnings per share (EPS) of $1.41, surpassing the forecasted $1.34. Despite this positive performance, the company faced a significant revenue shortfall, posting $487.3 million against the expected $903.45 million. Stonex Group’s strategic acquisitions, including RJ O’Brien and Benchmark Company, are anticipated to support future growth. The company projects optimistic earnings per share for the fiscal years 2025 and 2026, with estimates of $6.33 and $6.57, respectively. Analysts have noted the potential for revenue synergies to exceed cost synergies from the RJ O’Brien acquisition. Additionally, Stonex Group has been active in expanding its market footprint with a strategic investment in Bamboo Payment Systems and the acquisition of Planter Row. The company also received CME approval for its New York-based metals vault, enhancing its offerings in the metals market. These developments reflect Stonex Group’s focus on strengthening its market position and expanding its global reach.
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