Knight Trading Group, Inc. (Nasdaq: NITE) fell 3 11/16 to 28 1/2 Wednesday after the online brokerage said third quarter results will be below previous expectations because of a drop in stock trading and expenses associated with international expansion.
The company said net income for the quarter will be between 13 and 16 cents per share, below the 22 to 27 cents originally estimated. Knight plans to report results on October 18th.
“In the third quarter, we saw an operating environment characterized by low volatility and recurring declines in Nasdaq,” said president and chief executive officer Kenneth D. Pasternak. As individual investors got over the first quarter’s “euphoria,” he said, “order flow moved to less volatile, highly liquid securities.”
Knight’s woes dragged other online brokerages lower. E*Trade (Nasdaq: EGRP) dropped 1/2 to 15 5/16, and Ameritrade (Nasdaq: AMTD) lost 1 1/4 to 15 5/16.