BGC Group, Inc. (NASDAQ: BGC) has updated its outlook for the first quarter ending on March 31, 2025. The company has reaffirmed its previously stated outlook ranges for revenue and pre-tax adjusted earnings. The outlook was initially provided in the financial results press release issued on February 14, 2025.
One of the key metrics, "adjusted earnings before noncontrolling interests and taxes," has been used by management to evaluate the company's financial performance. It primarily excludes certain non-cash items and other expenses. The company's adjusted earnings and adjusted EBITDA measures exclude all GAAP charges included in the line item "equity-based compensation and allocations of net income to limited partnership units and FPUs."
BGC Group also excludes various other GAAP items that are not reflective of the company’s underlying performance in a given period from its calculation of adjusted earnings. These exclusions may include compensation-related items with respect to cost-saving initiatives, such as severance charges incurred in connection with headcount reductions as part of broad restructuring and/or cost savings plans.
The company calculates its tax provision for post-tax adjusted earnings using an annual estimate similar to how it accounts for its income tax provision under GAAP. The resulting annualized tax rate is applied to the company's quarterly GAAP income (loss) from operations before income taxes and noncontrolling interests in subsidiaries.
BGC's pre* and post-tax adjusted earnings per share calculations assume either that the fully diluted share count includes the shares related to any dilutive instruments, but excludes the associated expense, net of tax when the impact would be dilutive, or the fully diluted share count excludes the shares related to these instruments, but includes the associated expense, net of tax when the impact would be anti-dilutive.
Virtually all of BGC’s key executives and producers have equity stakes in the company and its subsidiaries and generally receive deferred equity as part of their compensation. A significant percentage of BGC’s fully diluted shares are owned by its executives, partners, and employees.
The market has reacted to these announcements by moving the company's shares -2.5% to a price of $9.61. If you want to know more, read the company's complete 8-K report here.
