New York based brokerage group StoneX (NASDAQ:SNEX) has reported its fiscal third quarter 2022 results (for the calendar April-June 2022 quarter, as the company has a September 30 fiscal year end), showing a slight decline in overall Revenues, as well as in the company’s Retail CFD business.

For the quarter, StoneX brought in Operating Revenues of $528.8 million, down 3% from the previous quarter’s $544.7 million. StoneX reported Quarterly Net Income of $49.1 million, versus $64.0 million the previous quarter.

In its CFD business – mainly the FOREX.com and City Index retail operations the company acquired in 2020 – Revenues were down 12% QoQ, coming in at $86.8 million versus $98.9 million in fiscal Q2. However this year is shaping up much stronger than last year, with the past two quarters being the best StoneX has seen from its CFDs business since making the acquisition.

StoneX’s CFD business generated average daily trading volumes (ADV) of $13.1 billion in Q3 2022, down from $14.9 billion the previous quarter, but again much improved over the $10.6 billion ADV StoneX saw for all of fiscal 2021.

Sean M. O’Connor, CEO of StoneX Group Inc., stated,

“We continued to see strong performance across all products and segments, resulting in net income for the quarter of $49.1 million, up 44% compared to the prior year, and diluted EPS of $2.37. Standout performance was achieved by our retail business, with segment income up 338%, and our physical commodities businesses performed very well with operating revenues up 37%.

Also notable was the increase in interest received on our client float, up 207%. Our financial results generated an ROE of 19.1% on stated book value and a 21.0% ROE on tangible book value for the quarter, and an ROE of 21.2% on stated book value and a 23.5% ROE on tangible book value for the year-to-date period.”

StoneX’s full report on its fiscal Q3 2022 results can be seen here.


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