Lively capital markets are doing wonders for the fundamentals of brokerage-adjacent companies like this one.
Brokerage services provider Marex Group (MRX -0.58%) proved to be something of a sleeper stock this week. Investors were impressed by the outstanding second-quarter performance of the rather under-the-radar finance sector title, and rewarded it by pushing its stock price well higher. Week to date as of early Friday morning, Marex shares were trading almost 14% higher, according to data compiled by S&P Global Market Intelligence.
Frothy markets, healthy results
For its second quarter, U.K.-based Marex took in revenue of just over $422 million, which was 16% higher on a quarter-over-quarter basis (the company had its IPO in April, and figures for the same period one year ago were unavailable). GAAP net income landed just above $59 million, against the quarter-ago result of almost $44 million. On a non-GAAP (adjusted) per share basis, those figures were a respective $0.90 and $0.69.
Both headline results crushed analyst expectations. On average, pundits following Marex stock were estimating the company would earn less than $349 million in revenue, and net an adjusted profit of $0.57 per share.
In its earnings release, Marex attributed its outperformance to organic growth — aided greatly by robust financial markets — and the continued integration of recent acquisitions.
Aiming for a full decade of consistent growth
Marex wrote that its potential “remains positive and we believe we are on track for a tenth year of sequential growth.” The company is guiding for full-year adjusted operating profit of $280 million to $290 million. It did not provide any forecasts for revenue or net income.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
