Investing.com -- Shares of CMC Markets PLC (LON:CMCX) fell sharply by 12.5% today following the company's third-quarter trading update, which showed the firm on track with its previous financial guidance, but failed to uplift investor sentiments.
The update confirmed that the guidance for fiscal year 2025 revenues and costs remains unchanged since the half-year results announced on November 21.
Despite the company's assertion that it is on track to achieve net operating income (NOI) in line with previous forecasts for FY25, investors appeared to have anticipated more robust figures.
The current consensus for NOI stands at £333 million, suggesting a second-half NOI of £156 million, which is lower than the £177 million reported in the first half. The projected profit before tax (PBT) is £86.1 million, compared to £49.6 million in the first half.
CMCX's management also reiterated their confidence in meeting the cost guidance of approximately £225 million, excluding variable remuneration and non-recurring charges. However, this confirmation did not seem to assuage market concerns, leading to a significant drop in the stock price.
In contrast to the market's reaction, RBC analysts have expressed a positive outlook on the company's valuation and future profitability. "We believe the potential profitability of CMCX’s core business is underappreciated by the market, and has been masked by elevated investment over FY22-FY24.
With investment having peaked, the results for 2H24 and 1H25 are better indicators of the future profitability potential of the group, and act as evidence of investment in infrastructure bearing fruit, particularly in B2B channels. the analyst added.
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