StoneX Group Delivers Record-Breaking Q4 and Full-Year Results, Highlighting Strong Earnings Potential
StoneX Group, a leading global financial services company, has announced record-breaking results for its fourth quarter and full-year ended September 30, 2024. In a recent conference call, the company's CEO, Sean O'Connor, highlighted the strong finish to the fiscal year, which resulted in record full-year operating results for the third consecutive year.
According to the company's press release, StoneX Group reported net income of $76.7 million and diluted earnings per share of [indiscernible] for the fourth quarter, representing a 51% increase compared to the same period last year and an 18.5% return on equity (ROE) on stated book value. The company's operating revenues also reached a record high of $920.1 million, up 18% from the prior year.
"This strong finish to our fiscal year has resulted in record full-year operating results for the third year in a row, which we believe validates our strategy and understood the robust earnings potential of our franchise," O'Connor stated during the conference call. The company's full-year operating revenues were $3.4 billion, up 18% from the prior year, while net income reached a record $260.8 million, up 9% with adjusted net income of $264.2 million, up 18%. EPS was $7.96 per share, up 7%.
The company's CEO emphasized that the earnings power from its enhanced client footprint should be even more evident with improved trading conditions. He noted that while market volatility has been generally low, there have been some exceptions periodically in certain product areas, which negatively impacted revenue capture. However, despite these challenges, StoneX Group continues to see good client engagement and market share capture as evidenced by increased volumes across all of its products.
StoneX Group's CEO also pointed out that the company's return on equity for the year was 16.9% on stated book value and 17.8% on tangible book value, indicating a strong financial position. The company ended the 2024 fiscal year with book value per share of $53.62, up 21% versus a year ago.
The company's CFO, Bill Dunaway, highlighted that total compensation and other expenses were up 8% for the quarter, with variable compensation up 7%, in line with net operating revenue growth rate. Fixed compensation and related costs were up 14% versus a year ago but down 4% compared to the immediately preceding quarter.
In conclusion, StoneX Group's record-breaking Q4 and full-year results demonstrate the company's strong earnings potential and its ability to navigate challenging market conditions. With a solid financial position and a growing client base, StoneX Group is well-positioned for continued success in the global financial services industry.
