StoneX Group Inc. (NASDAQ:SNEX) Q3 2024 Earnings Conference Call August 7, 2024 9:00 AM ET

Company Participants

Bill Dunaway - Chief Financial Officer
Sean O'Connor - Chief Executive Officer

Conference Call Participants

Dan Fannon - Jefferies

Operator

Good day and thank you for standing by. Welcome to the 2024 Third Quarter StoneX Earnings Call. At this time, all participants are in listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions]

Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your first speaker today, Bill Dunaway, CFO. Please go ahead.

Bill Dunaway

Good morning. My name is Bill Dunaway. Welcome to our earnings conference call for our third quarter ended June 30, 2024. After the market closed yesterday, we issued a press release reporting our results for our third fiscal quarter of 2024. This release is available on our website at www.stonex.com, as well as a slide presentation which we will refer to on this call and our discussions of our quarterly and year-to-date results. The presentation and an archive of the webcast will also be available on our website after the call’s conclusion.

Before getting underway, we are required to advise you and all participants should note that the following discussion should be taken in conjunction with the most recent financial statements and notes thereto, as well as the Form 10-Q filed with the SEC.

This discussion may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934 is amended.

These forward-looking statements involve known and unknown risks and uncertainties which are detailed in our filings with the SEC. Although the company believes that its forward-looking statements are based upon reasonable assumptions regarding its business and future market conditions, there can be no assurances that the company’s actual results will not differ materially from any results expressed or implied by the company’s forward-looking statements.

The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any forward-looking statements are not guarantees of future performance.

With that, I will now turn the call over to Sean O'Connor, the company’s CEO.

Sean O'Connor

Thanks, Bill. Good morning, everyone, and thanks for joining the call. Starting on Slide 3 of the earnings deck. The third quarter of fiscal 2024 was a solid result for us, with net income of $61.9 million, an EPS of $1.88 per diluted share. This represented a 15.7% ROE on stated book and 16.5% ROE on tangible book value, despite a 19% increase in book value over the year, and a 54% increase in book value over the last two years versus the comparative year ago period, which was a record quarter for us, where we are down 11% in net income and 13% in EPS. On a consecutive quarterly basis, our earnings were up 17% and our diluted EPS was up 15%.