INTL FCStone Inc. reports 3Q 2016, net income is up 20% YoY

INTL FCStone Inc. (NASDAQ:INTL), a financial services organization delivering financial products, advisory and execution services, has announced its financial results for the fiscal year 2016 third quarter ended June 30, 2016.

Compared to last year, the net income is up with 20% to $14.6 million. Diluted EPS are also up 26%.

Annualized Return of Equity of 14.1% for quarter and 12.4% year to date.

Interest Income/Expense:

Overall interest income increased $5.0 million to $15.6 million in the third quarter, with our domestic fixed income institutional business increasing interest income $2.2 million over the prior year. The acquisition of G.X. Clarke & Co. on January 1, 2015 added the fixed income institutional business, and resulted in a significant change to our historical aggregate level of interest income and to a lesser extent interest expense.

Interest expense increased 57% to $7.7 million in the third quarter compared to $4.9 million in the prior year. The increase in interest expense is primarily related to $1.5 million of higher expense from the fixed income institutional business acquired.

INTL FCStone q3 2016

Sean M. O’Connor, CEO of INTL FCStone Inc., stated:

Growth in operating revenues across all of our business segments combined with tight control over fixed costs resulted in an increase of 20% in net quarterly earnings from a year ago. Diluted EPS was up 26%, boosted partly as a result of a reduced share count due to our recent share buybacks. In terms of segment income, Commercial Hedging had a materially better quarter driven by a substantial increase from our global grains business. Securities continued its strong performance and both the Physical Commodities and Clearing and Execution Services segments showed solid improvement over the prior year. Despite a 43% growth in transaction volumes, Global Payments segment income was down slightly against last year’s quarter, which benefited from exceptional market conditions”.

To see the company’s full report, click here.

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