Earnings Estimates Highlights: KCG Holdings, Inc. (NYSE:KCG)

KCG Holdings, Inc. (NYSE:KCG) reported earnings for the three months ended Mar2016 on April 21, 2016. The company earned $0.06 per share on revenue of $345.42M. Analysts had been modeling earning per share of $0.03 with $311.77M in revenue.

First Quarter Highlights

KCG U.S. equity market making grew revenues 22 percent year over year

KCG Institutional Equities grew average daily U.S. equity share volume 17 percent year over year

KCG BondPoint set a new quarterly record for average daily fixed income par value traded with growth of 32 percent year over year

KCG announced an agreement to sell its NYSE Designated Market Maker (DMM) and completed the sales of assets related to retail U.S. options market making

KCG repurchased 1.8 million shares of KCG Class A Common Stock for $20.5 million, $1.0 million in warrants and $35.0 million par value of its 6.875 percent Senior Secured Notes for $31.2 million

Daniel Coleman, Chief Executive Officer of KCG, said, “KCG generated strong financial results in the first quarter of 2016 as a result of  the market conditions in U.S. equities, increased penetration of strategic clients and the performance of KCG`s trading models. KCG U.S. equity market making posted strong revenues from client and exchange-based activities. We took further action to streamline and simplify KCG by exiting certain businesses following a strategic review. In addition, we utilized free cash to repurchase shares, warrants and debt as opportunities arose. Subsequent to the first quarter, we monetized a portion of our stake in Bats Global Markets, which added to free cash available for deployment.”

KCG Holdings, Inc. earnings per share showed an increasing trend of 351.8% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 130%.Analysts project EPS growth over the next 5 years at 10%. It has EPS annual decline over the past 5 fiscal years of -5.7% when sales grew 11.4. It reported -50.4% sales drop, and -81.1% EPS decline in the last quarter.

The stock is trading at $14.07, up 44.31% from 52-week low of $9.75. The stock trades down -0.92% from its peak of $14.2 and -76.83% below the consensus price target of $3.26. Its volume clocked up at 0.54 million shares which is lower than the average volume of 0.55 million shares. Its market capitalization currently stands at $1.16B.