We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Virtu Financial (VIRT) Up 11% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
It has been about a month since the last earnings report for Virtu Financial (VIRT - Free Report) . Shares have added about 11% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Virtu Financial due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Virtu Financial Q2 Earnings Surpass, Increase Y/Y
Virtu Financial’s second-quarter 2020 earnings per share of $1.72 beat the Zacks Consensus Estimate by 9.6%. Moreover, the bottom line skyrocketed 975% year over year.
The company benefited from the market volatility amid the COVID-19 outbreak.
Revenues of $669 million soared 180% year over year on the back of heightened market volatility, bid-ask spreads, and trading volumes and asset classes. Moreover, the top line surpassed the consensus mark by 3.4%.
Quarterly Operational Update
Adjusted trading income of the company surged 179.9% to $668.7 million year over year.
In the quarter under review, adjusted EBITDA jumped 444.8% to $485.8 million.
Total operating expenses jumped 13.5% year over year to $501.4 million. This upside was owing to higher brokerage, exchange and clearance fees, employee compensation and payroll taxes, etc.
Segmental Update
Adjusted net trading income from the Marketing Making segment ascended 262.3% year over year in the quarter under review. Under this segment, adjusted net trading income from Global Equities rose 305% year over year while the same from Global FICC, Options and Other climbed 105% year over year.
Adjusted net trading loss from Execution Services was $689 million against the prior-year quarter’s net trading income of $355 million.
Dividend Update
The company's board of directors declared a quarterly cash dividend of 24 cents per share, payable Sep 15, 2020 to its shareholders of record as of Sep 1.
Financial Update
As of Jun 30, 2020, the company had total assets worth $10.2 billion, up 7.1% from the level at 2019 end.
It exited the quarter with total equity of $1.7 billion, up 38.4% from the level on Dec 31, 2019.
The company exited the second quarter with $670.7 million of cash and cash equivalents, down 8.4% from the 2019-end level.
In the quarter under review, long-term borrowings dropped 9.7% from the level at 2019 end.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 8.57% due to these changes.
VGM Scores
Currently, Virtu Financial has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Virtu Financial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Virtu Financial (VIRT) Up 11% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Virtu Financial (VIRT - Free Report) . Shares have added about 11% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Virtu Financial due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Virtu Financial Q2 Earnings Surpass, Increase Y/Y
Virtu Financial’s second-quarter 2020 earnings per share of $1.72 beat the Zacks Consensus Estimate by 9.6%. Moreover, the bottom line skyrocketed 975% year over year.
The company benefited from the market volatility amid the COVID-19 outbreak.
Revenues of $669 million soared 180% year over year on the back of heightened market volatility, bid-ask spreads, and trading volumes and asset classes. Moreover, the top line surpassed the consensus mark by 3.4%.
Quarterly Operational Update
Adjusted trading income of the company surged 179.9% to $668.7 million year over year.
In the quarter under review, adjusted EBITDA jumped 444.8% to $485.8 million.
Total operating expenses jumped 13.5% year over year to $501.4 million.
This upside was owing to higher brokerage, exchange and clearance fees, employee compensation and payroll taxes, etc.
Segmental Update
Adjusted net trading income from the Marketing Making segment ascended 262.3% year over year in the quarter under review. Under this segment, adjusted net trading income from Global Equities rose 305% year over year while the same from Global FICC, Options and Other climbed 105% year over year.
Adjusted net trading loss from Execution Services was $689 million against the prior-year quarter’s net trading income of $355 million.
Dividend Update
The company's board of directors declared a quarterly cash dividend of 24 cents per share, payable Sep 15, 2020 to its shareholders of record as of Sep 1.
Financial Update
As of Jun 30, 2020, the company had total assets worth $10.2 billion, up 7.1% from the level at 2019 end.
It exited the quarter with total equity of $1.7 billion, up 38.4% from the level on Dec 31, 2019.
The company exited the second quarter with $670.7 million of cash and cash equivalents, down 8.4% from the 2019-end level.
In the quarter under review, long-term borrowings dropped 9.7% from the level at 2019 end.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 8.57% due to these changes.
VGM Scores
Currently, Virtu Financial has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Virtu Financial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.