Virtu Financial (NYSE:VIRT) Announces Earnings Results, Beats Estimates By $0.25 EPS

Virtu Financial (NYSE:VIRT) posted its quarterly earnings results on Thursday. The company reported $1.77 EPS for the quarter, topping analysts’ consensus estimates of $1.52 by $0.25, FiscalAI reports. The business had revenue of $956.39 million during the quarter, compared to the consensus estimate of $647.02 million. Virtu Financial had a return on equity of 49.06% and a net margin of 13.50%. The company’s revenue for the quarter was up 147.1% compared to the same quarter last year. During the same period last year, the firm earned $1.05 earnings per share.

Here are the key takeaways from Virtu Financial’s conference call:

• Virtu reported third-quarter Adjusted Net Trading Income of $704 million, Adjusted EPS of $1.77 and a 62% Adjusted EBITDA margin. Trailing-12-month ANTI, Adjusted EBITDA and Adjusted EPS were all company records.
• Market Making held up better than the sequential decline in U.S. equity volumes and volatility, which management attributed in part to activity across international markets, crypto and other products. Executives said diversification should make results less correlated with U.S. equity metrics over time.
• Virtu’s trading capital reached $3.4 billion after a $500 million debt issuance, with trailing debt-to-EBITDA of 1.4x; the company maintained its quarterly dividend at $0.24 per share. Management said it could deploy the new capital while retaining internal buffers, though slower activity can reduce capital usage.
• Management described Virtu Execution Services as a strategic, global business serving 1,400 clients and declined to comment on reports of a potential sale. It said the company does not need an asset sale to pursue its medium-term capital goals.
• Market volumes and volatility moderated from the first half, even though they remained above historical averages. Virtu also expects continued hiring and technology investment, with expenses having risen in line with expectations.

Virtu Financial Stock Performance

NYSE VIRT traded up $0.10 during trading hours on Friday, reaching $54.05. The company’s stock had a trading volume of 1,030,222 shares, compared to its average volume of 1,040,930. The company has a current ratio of 0.45, a quick ratio of 0.45 and a debt-to-equity ratio of 0.87. The business has a 50-day simple moving average of $57.63 and a 200 day simple moving average of $52.43. Virtu Financial has a 52 week low of $31.55 and a 52 week high of $68.76. The stock has a market cap of $8.39 billion, a PE ratio of 7.94, a PEG ratio of 0.39 and a beta of 0.67.

Virtu Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be issued a $0.24 dividend. The ex-dividend date of this dividend is Tuesday, December 1st. This represents a $0.96 dividend on an annualized basis and a yield of 1.8%. Virtu Financial’s dividend payout ratio (DPR) is currently 15.95%.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the company. Weiss Ratings restated a “buy (b-)” rating on shares of Virtu Financial in a research note on Wednesday, August 26th. Morgan Stanley decreased their target price on Virtu Financial from $57.00 to $56.00 and set an “underweight” rating for the company in a research report on Friday, October 9th. JPMorgan Chase & Co. upgraded Virtu Financial from a “neutral” rating to an “overweight” rating and set a $84.00 target price for the company in a research report on Monday, October 5th. Piper Sandler reiterated an “overweight” rating on shares of Virtu Financial in a report on Friday, October 2nd. Finally, Evercore upgraded Virtu Financial to an “outperform” rating in a report on Monday, October 5th. Four equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Virtu Financial presently has an average rating of “Hold” and an average target price of $68.25.

Insider Activity at Virtu Financial

In other news, Director John Nixon sold 9,094 shares of the company’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $60.13, for a total transaction of $546,822.22. Following the completion of the transaction, the director directly owned 30,902 shares of the company’s stock, valued at approximately $1,858,137.26. This represents a 22.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Joseph Grano, Jr. sold 8,400 shares of the stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $60.94, for a total value of $511,896.00. Following the sale, the director owned 33,814 shares in the company, valued at $2,060,625.16. The trade was a 19.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 46.76% of the stock is currently owned by corporate insiders.

Trending Headlines about Virtu Financial

Here are the key news stories impacting Virtu Financial this week:

• Positive Sentiment: Q3 earnings were $1.77 per share, ahead of the $1.52 analyst consensus, while revenue of $956.4 million substantially exceeded estimates of about $647 million and rose 147.1% year over year. The earnings beat and sharp revenue growth may support investor optimism. Virtu Financial Surpasses Q3 Earnings and Revenue Estimates
• Neutral Sentiment: Virtu maintained its quarterly dividend at $0.24 per share, equivalent to $0.96 annually and a stated yield of 1.8%. It also outlined a near-term trading-capital goal of around $4 billion or more; the available report does not detail the expected financial impact of that target. Virtu outlines trading capital goal and dividend

Virtu Financial Company Profile

Virtu Financial, Inc is a global financial services company that provides liquidity, trading, and technology solutions to the financial markets. Through its market-making business, Virtu facilitates trading in a broad range of products, including equities, exchange-traded funds, options, fixed income, foreign exchange, commodities, and certain digital assets.

The company also operates an execution services business that provides trading and workflow technology to institutional investors, asset managers, broker-dealers, and other financial institutions.