BGC Partners, Inc. (NASDAQ:BGCP), a global brokerage servicing the financial and real estate markets, has updated its outlook for the quarter ending June 30, 2015.
The company notes that the results will include the consolidation of those for financial technologies and support services provider GFI Group Inc., now a BGC’s majority-owned division.
According to the update, BGC now anticipates both its quarterly distributable earnings revenues and its pre-tax distributable earnings to be around the mid-point of the range of its earlier guidance. As per this initial guidance, published on April 29, 2015:
Original Second Quarter 2015 Outlook Compared with Second Quarter 2014 Results
- The Company had expected distributable earnings revenues to increase by between approximately 51% and 58% and to have been between approximately $650 million and $680 million, compared with $430.3 million.
- BGC Partners had anticipated pre-tax distributable earnings to increase by between approximately 32% and 51% and to have been in the range of $70 million to $80 million, versus $53 million.
- The Company had expected its effective tax rate for distributable earnings to remain approximately 15%.
- The Company’s original outlook for second quarter of 2015 revenues would have been at least $18 million higher but for the strengthening of the U.S. dollar compared with the year earlier period.
BGC had a very strong first quarter, on the back of solid performance of its financial services business. Post-tax distributable earnings for the first quarter of 2015 amounted to $62 million, marking a rise of 32% from a year earlier. Revenues for distributable earnings also saw a steep rise – they reached $563.9 million, up 26.5% from the first quarter of 2014.
To view the official announcement by BGC Partners on the second-quarter outlook, click here.