The New Knight of Trading

Yesterday, Knight Capital (NITE), one of my Quantum Growth stocks, reported very good earnings and the stock jumped over 10%. Excluding a gain from an investment, NITE earned 56 cents a share for the fourth quarter. The consensus on Wall Street was for earnings of 38 cents a share. Total revenues jumped 28.2%. It looks like all business units were strong except for asset management which is certainly understandable.

The company’s CEO, Tom Joyce, said, “On a consolidated basis, we grew revenues and pre-tax income while achieving pre-tax margins of 43 percent for this quarter. In Global Markets, we gained market share during the fourth quarter and executed greater share volume than any U.S. exchange or securities firm according to industry reports. In Asset Management, the unprecedented market conditions continued to depress fund performance. Finally, our consolidated results included a pre-tax gain of $51.6 million from the partial sale of Knight’s ownership stake in Direct Edge as well as the sale of our remaining interest in the ISE Stock Exchange to International Securities Exchange Holdings.”

This was a very impressive quarter from NITE. Here’s Tom Joyce talking with Erin Burnett on CNBC.

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