CEO confident in FCStone's ability to thrive
FCStone Group, Inc. (Nasdaq:FCSX) CEO Paul Anderson said the Kansas City-based commodity risk management firm is prudently monitoring the domestic and international economic environment and believes the firm has the employees and processes needed to mitigate potential issues. Anderson made the comments during a midday conference call with analysts and investors.
“We’re confident in our ability to thrive in all market environments and remain excited about the new growth prospects that we have in place, as well as our ability to continue to expand the business and grow over the long term by focusing both domestically and internationally,” Anderson said.
In Thursday afternoon trading, FCSX has plunged almost 46% and is the leading percentage loser on the Nasdaq. The company’s stock is down nearly 25% since going public last year.
KCStone reported early Thursday that its third-quarter profit clocked in at $8 million, or $0.28 per share, which widely missed Wall Street’s expectation of $0.47 per share. During the year-earlier quarter, KCStone earned $8.1 million, or $0.29 per share.
The company said profits decreased due to a $1.1 million bad debt write-off related to the cotton market. The firm also reversed a previously recorded but unrealized gain of $3.1 million on an interest rate hedge, due to a decline in fair value.
Quarterly revenue climbed to $83.4 million from $64.5 million during the year-ago period. Wall Street analysts anticipated $82.5 million.
At Thursday’s close, FCSX was down 41%, or $12.26, to $16.21.
