Broadpoint Gleacher Securities Group, Inc. (BPSG) is producing big gains on the heels of the successful integration of what used to be 2 seperate comapanies in June.
Company Description
Broadpoint Gleacher Securities Group, Inc. provides a variety of financial services to institutional clients primarily in America. The company was founded in 1952 and has a market cap of $1.06 billion.
Shares of BPGS have been surging since early spring, soon after Broadpoint completed its acquisition of Gleacher Partners and the market continued its upward ascent. The company’s impressive second-quarter results, reported on July 22, only helped to fuel the rally.
Second-Quarter Results
With the combined entities now on the books together, revenue was up 172% from last year to $92.7 million. Earnings came in at 18 cents per share, 12 cents ahead of the Zacks Consensus Estimate.
The company noted that its results were fueled by its fixed income and investment banking divisions. Also of interest, per employee revenue came in at an impressive $1.36 million.
Estimates Jump
After word of the good quarter hit the Street, analysts raised their earnings estimates. The current year added 8 cents and moved to 25 cents per share, while the next-year estimate added 4 cents, climbing to 36 cents per share, a 43% growth projection.
In spite of the rising estimates, this stock does not come cheap, trading at 36X projected current-year earnings.
The Chart
Shares of BPSG are up big over the last 6 months, taking flight in early March after bottoming out just above $2. More recently, this stock has crossed the $9 mark, take a look below.
