Capital markets firm Knight Capital Group, Inc. (NITE), Wednesday, reported a decline in profit for the third quarter, which came in below estimates, reflecting a weak performance at its Global Markets segment.
The Jersey City, New Jersey-based group posted net profit of $29.22 million or $0.31 per share compared to $36.29 million or $0.40 per share a year ago.
Net income from continuing operations declined to $30.47 million or $0.32 per share from $41.10 million or $0.46 per share in the previous year. On average, ten analysts polled by Thomson Reuters were looking for earnings per share of $0.39. Analysts' estimates typically exclude special items.
Knight Capital's quarterly revenues rose to $299.93 million, well above anticipated Street View of $281.72 million and last year's revenues of $240.77 million, as commissions and fees, net investment and other income as well as net trading revenues improved year-over year. "Total revenues in the third quarter were fueled by market share gains in equities and increased fixed income trade volumes amid renewed competitive pressures from the larger firms," commented Thomas Joyce, Chairman and Chief Executive Officer, Knight Capital Group.
The group's Global Markets division's quarterly revenues rose 18% to $295.2 million from $250.1 million, driven by market share gains in U.S. equities as well as new products and increased trade volumes in global institutional fixed income. However, the segment's pre-tax income plunged 34% to $58.5 million due to lower market volatility, higher regulatory transaction fees and ongoing investments in execution quality, global expansion, options market-making and self clearing.
Revenue from the Corporate segment for the latest quarter was $4.7 million, compared to negative revenues of $9.3 million a year earlier.
During the latest third quarter, total expenses hiked to $250.17 million from $171.22 million in the same period of 2008, as the group had higher headcount of 1098 full-time employees at quarter end, compared to 877 a year earlier. The group spent $139.33 million on employee compensation and benefits, higher than $94.26 million spent in the third-quarter of 2008.
On a year-to-date basis, net income declined to $74.09 million or $0.79 per share from $98.20 million or $1.07 per share a year ago. For the nine-month period, total revenues rose to $859.15 million from $624.58 million in the earlier year.
NITE closed Tuesday's regular trading at $21.79, on the Nasdaq.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.