Piper Sandler lowers Arbor Realty Trust stock price target on credit issues
Investing.com -- Flow Traders reported third-quarter EBITDA of €19.4 million, missing consensus expectations by 50% due to weaker revenues across all regions.
Net trading income (NTI) for the quarter was €78.4 million, falling 25% below consensus estimates and declining 41% quarter-over-quarter and 34% year-over-year.
The earnings miss was primarily driven by weaker revenue capture in Flow Traders’ European operations, which recorded a rate of 2.5 basis points compared to the expected 3.6 basis points. This led to a 31% NTI miss in Europe. The company also missed expectations in the US by 6% and in Asia by 16%.
ETP value traded during the quarter was 6% below consensus expectations across all regions, with Asia recording a particularly significant 29% miss. The overall revenue capture rate was 1.9 basis points, missing the consensus estimate of 2.3 basis points.
Fixed costs for the quarter came in at €51.2 million, 3% higher than consensus estimates. As a result, earnings per share reached €0.25, missing expectations by 58%.
The company’s total trading capital at the end of the third quarter stood at €848 million, representing a 2% increase quarter-over-quarter. Flow Traders has secured a new $200 million private credit facility and a $75 million revolving credit facility to expand its trading capital base. The annual interest on the private credit facility will be approximately €18 million.
Flow Traders has updated its fixed operating expense guidance for fiscal year 2025 to €200-205 million from the previous range of €190-210 million, citing additional technology investments and targeted hiring in growth areas.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.