Several analysts have recently weighed in on BGC Partners, Inc. (NASDAQ:BGCP), issuing notes to investors. Richard Repetto of Sandler O’Neill released a note with Buy rating on the stock 29th July with a $12.50 price target.
“Distributable earnings for BGCP beat us and consensus. BGC Partners reported 2Q15 distributable earnings per share of $0.18, which was above our estimate and the consensus of $0.17. Revenues of $685 million were $18 million above our estimate. Meanwhile, expenses came in $17 million above our forecast of $590 million. Pre-tax distributable earnings of $78 million were $1 million above our forecast. On a GAAP basis, BGCP reported EPS of $0.04. Combination of liquidity/capital, dominance in IDB space, and diversification uniquely positions BGCP. With growing earnings (enhanced by GFI, other acquisitions, electronics & real estate), the Trayport proposed sale, and receipt of $650 million of NDAQ stock (from the sale of eSpeed) over time, BGCP expects to have significant liquidity to continue its ongoing program of acquisitions and capital return. This combination of added liquidity/capital, stronger positioning in the interdealer broker space with the consolidation of GFI, and diversification (Real Estate) should bode well for the company as it competes for what could be a shrinking dealer market.”
Richard also added, “We are increasing our ‘15/’16 EPS estimates to $0.77/$0.91 from $0.73/$0.86, respectively. The upward EPS revision reflects the 2Q beat, management’s guidance for 3Q, and continued growth of high margin electronics revenue. We are increasing our price target by $1 to $12.50. Our $12.50 price target is based on 12.5x our 2017 EPS estimate. Distributable earnings for BGCP beat us and consensus. BGC Partners reported 2Q15 distributable earnings per share of $0.18, which was above our estimate and the consensus of $0.17. Revenues of $685 million were $18 million above our estimate. Meanwhile, expenses came in $17 million above our forecast of $590 million. Pre-tax distributable earnings of $78 million were $1 million above our forecast. On a GAAP basis, BGCP reported EPS of $0.04. Revenues were weighted toward Financial Services (67%) versus Real Estate (33%) as BGCP’s financial services revenues benefited from a full quarter inclusion of GFIG. ”
BGC Partners, Inc. (NASDAQ:BGCP) is a leading global brokerage company servicing the financial and real estate markets. Products include fixed income securities, interest rate swaps, foreign exchange, equities, equity derivatives, credit derivatives, commercial real estate, commodities, futures, and structured products. BGC also provides a wide range of services, including trade execution, broker-dealer services, clearing, processing, information, and other back-office services to a broad range of financial and non-financial institutions. Through its BGC Trader and BGC Market Data brands, BGC offers financial technology solutions, market data, and analytics related to numerous financial instruments and markets. Through the Newmark Grubb Knight Frank brand, BGC offers a wide range of commercial real estate services, including leasing and corporate advisory, investment sales and financial services, consulting, project and development management, and property and facilities management. BGC’s customers include many of the world’s largest banks, broker-dealers, investment banks, trading firms, hedge funds, governments, corporations, property owners, real estate developers, and investment firms.
On Sept. 29, 2015 BGC Partners, Inc.(NASDAQ:BGCP) a leading global brokerage company servicing the financial and real estate markets, announced that it has updated its outlook for the quarter ending September 30, 2015. The results will include the consolidation of those for BGC’s majority-owned division, GFI Group Inc a leading intermediary and provider of trading technologies and support services to the global OTC and listed markets. BGC expects its quarterly revenues for distributable earnings and its pre-tax distributable earnings to be around the mid-point of the range of its previously stated guidance. This updated outlook reflects the addition of GFI and strong double-digit year-on-year growth for the Company’s Real Estate Services business.