Home Broker News BGC Partners Likely to Exceed 1QFY20 Expectations Amidst Ongoing Pandemic

BGC Partners Likely to Exceed 1QFY20 Expectations Amidst Ongoing Pandemic

BGC Partners’ updated outlook says it is likely to beat the expectations set for the first quarter due to a substantial rise in trading activity during March

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Covid-19 pandemic changes the game for BCG Partners as the company seems more confident than ever about its quarter 1 financial results

BCG Partners, a renowned global brokerage firm based in New York City, has recently released a revised financial and operational outlook of the company for the first quarter of 2020, after taking into account the volatility instilled in the market by the Covid-19 pandemic.

The company on Thursday said that it expects to beat the outlook of the first quarter, as its staff and clients are putting in relentless effort to lift the financial performance of the company.

The outlook has also been updated on the back of a rise in volatility resulting from an abnormal surge in trading activity duirng the current month, with substantial volumes being witnessed in several global investment instruments.

In its earlier financial reports, the company predicted revenue earnings to be within the bracket of $540 to $580 million during the first quarter of 2020, as compared to the actual revenues of $544.8 million earned in the same period of last year.

On the other hand, Profit before taxes for the same period was expected to plummet within the bracket of around $90 to $106 million, as opposed to the actual figure of $106.2 million reported in the same period of last year. Furthermore, the company expected its adjusted earnings tax rate to be around 10 to 12 percent.

The company is slated to announce its financial result for the first quarter on May 5, 2020, which is likely to be much better than previous expectations based on the facts and updates provided in the company’s official statement.

Furthermore, the company announced in its statement that its balance sheet as well as liquidity continues to remain robust. In spite of that, the company has withdrawn around $230 million from its revolving credit facility since December 31, 2019, against a total outstanding figure of $300 million.

The Chairman and Chief Executive Officer of the Company, Howard W. Lutnick also shared his two cents on the announcement. He said that the staff and the clients, despite the challenging business environment, were striving to give their best.

Moreover, he said that the company was working closer than ever with the employees, traders, sales team, technology professional as well as the operational staff of its clients, in order to ensure smooth operation and connectivity of all parties to the company’s platform, and to help them have access to the critical global market liquidity.

‘We will continue to adapt as conditions change’, he further added.

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