ICAP (LON:IAP) report: Improving e-broking volume data

Date: 5 March 2010
Contributed by Daniel Stewart & Company

By Daniel Stewart & Co

- Total ave. daily e-broking volumes in February showed a 22% y-on-y recovery to $695.4bn. Whilst positive, we would stress that these remain relatively easy comparatives. Average daily volumes were +4% m-on-m.

- All products showed strong gains versus their y-on-y comparatives, with US Treasuries +37%, US Repos +27% & EU Repos +25%. It was particularly encouraging to note that spot fx volumes showed their first yon- y gain since Oct '08, +7%.

- We are in the process of finalising new forecasts on ICAP and these will be issued shortly. At the time of the profit warning on 5 Feb, the Company guided that FY'10 PBT would be within the range £295m-£315m.

- ICAP faces near term uncertainty, in the form of regulatory reforms – OTC and Volcker – and an ostensible softening in voice rates. However, this is set against the inherent, long term strength of its franchise and its predominance, amongst the inter-dealer brokers, in e-broking and post trade services.

New!
Stock Market Forums (US, Europe, Asia)
Free Membership

UK Stocks Recommendations

BP Q3 results: Again exceeding forecasts, 29 October 2009
The group’s recent third quarter results (27 October 09) saw BP comfortably exceeding analysts’ forecasts. While the global economic downturn continued to impact, an improved operational performance combined with additional cost savings helped to cushion the fall. Third quarter profits on an underlying replacement cost basis (strips out gains or losses in inventories held) declined to $4.98 billion, down 50.2pc over Q3 2008. Excluding exceptional items, profit fell to $4.67 billion, ahead of the consensus estimate at $3.25 billion. The fall in both oil and natural gas prices continued to sit at the heart of the downturn. In addition, profit margins at the group’s refining business remained under some pressure. However, despite the fall in profitability against last year, signs of improving operational performance continued to show through. Reported production for the quarter was 3.917 million barrels of oil equivalent per day (mboe/d), more than 7pc higher than for Q3 2008 - +4pc when adjusted for hurricanes during 2008.

Reckitt Benckiser Q3 results: Another polished performance, 29 October 2009
The group's recent third quarter results (27 October 09) saw the company retaining its reputation for reliability. Again, the company generated profits ahead of analysts' expectations – Q3 net profit rose to £357m (£285m – Q3 2008) against a consensus forecast of around £341m – but management was confident enough to raise its full year target for revenue growth to 6pc to 7pc against a previous target of 5pc to 6pc. Profit estimates were also raised to between 12pc and 13pc from 10pc to 11pc. Emerging markets again proved a growth driver, with strong free cash flow helping the company to reduce net debt (£423m against £1.1 billion as of 31Dec08).

BG Group Q3 results: International growth spurs a move towards the US dollar, 29 October 2009
The group’s recent third quarter results (28 October 2009) saw the company exceeding analysts’ forecasts. Thanks largely to lower natural gas and oil prices, third quarter net profit declined by 43.5pc to ?484m, against ?857m in Q3 2008. However, as has been the case for some time, resilient performances from the group’s Transmission & Distribution division and from its Liquefied Natural Gas (LNG) business helped to cushion the downturn. On the production front, output materialised at 615,000 barrels a day, a rise of 4.8pc on the year, although below many analyst expectations of nearer 8pc, thanks mainly to a delay in the start-up of the Hasdrubal facility in Tunisia. As for the outlook, production targets over the fourth quarter are expected to come in around 700,000 barrels of oil equivalent, a 12pc increase on last year. Finally, given the group’s continuing international growth, like its major rivals, BG is moving during 2010 to report its results in US dollars.

Stock Market News: All News | USA News | Indian News | China News

Stock Market Reports: All Stock Reports | USA Stock Market Reports | Indian Stock Market Reports | China Stock Market Reports | Russian Stock Market Reports

About Us | Privacy Policy | Contacts | Links | Contributors