Flow Traders: Volatility driven Q1 beat a "one-time only bonus"

Flow Traders

24/04/2018 09:42

** Shares in Flow Traders  FLOW.AS  slumps as much as 10 pct
in morning trade and is the worst faller on Amsterdam Micap
 .AMX  index
    ** Q1 net trading income handily beats estimates and Morgan
Stanley says the results were "stellar" as expected
    ** "The beat in net profit should be treated as a one-time
only bonus," Degroof Petercam analysts say, downgrading the
stock to "hold" from "buy"
    ** An Amsterdam-based trader explains that the profit came
for a big part from the US, and was very likely linked to the
big volatility explosion in Feb
    ** Degroof analysts say "the real test will be in Q2-18 when
market conditions should return to normal levels"
    ** "1Q18 results confirms the business model is working
accordingly, and the only question for now is what a normal
quarter looks like" - ING
    ** Net trading income expectations for rest of 2018 implies
a 49% increase YoY, per MS

 ((Toby.sterling.thomsonreuters.com@reuters.net ;
Nolwenn.brossier.thomsonreuters.com@reuters.net))