Commodity risk management firm FCStone Group Inc swung to a quarterly loss, hurt by a bad debt provision, higher professional fees and severance charges.
The company posted a net loss from continuing operations for the third quarter of $8.1 million, or 29 cents per share, compared with a net income from continuing operations of $8.4 million, or 29 cents a share last year.
Excluding items, FCStone had a net income of 2 cents per share, the company said.
Revenue for the third quarter ended May 31, was $57.5 million, from $83.6 million a year ago.
Analysts were looking for a loss of 11 cents per share, excluding items, on a revenue of $50.77 million, according to Reuters estimates.
During the third quarter, we experienced significantly lower exchange-traded and over-the counter contract trading volumes, primarily from customers within the agricultural, financial and energy markets, the company said in a statement.
Earlier this month, securities firm International Assets Holding Corp agreed to buy FCStone in an all-stock deal valued at about $130 million [nBNG513528 ].
Shares of the company were up 10 percent at $4.22 before the bell. They had closed at $3.82 Wednesday on Nasdaq. (Reporting by Brenton Cordeiro in Bangalore; Editing by Jarshad Kakkrakandy)