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Virtu Financial Posts Preliminary Q3 Report Until August 2020

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Virtu Financial, Inc. (VIRT - Free Report) recently announced the preliminary estimates for third-quarter 2020 revenues through Aug 31, 2020.

On a preliminary basis, Virtu Financial expects its trading income, net in the range of $295-$303 million for the two months ended Aug 31, 2020.

Adjusted net trading income is anticipated between $238 million and $246 million.

The company projects average daily adjusted net trading income in the bracket of $5.53-$5.72 million per day.

Virtu Financial altered its July 2020 estimated results for Average Daily Adjusted Net Trading Income to $6.50 million from the previous range of $6.70-$7 million per day.

On a preliminary basis, August results are likely to reflect trading income, net in the range of $122-$130 million and adjusted net trading in the $95-$103 million band. August preliminary results are likely to reflect Average Daily Adjusted Net Trading Income between $4.52 and $4.90 million per day. This indicates reduction in volumes and market volatility in the United States and Europe.

In the last reported quarter, the company benefited from market volatility amid the COVID-19 outbreak.

Revenues in the second-quarter gained on the back of heightened market uncertainty, bid-ask spreads, and trading volumes and asset classes.

What to Expect

This leading provider of financial services and products might have witnessed weak results in August due to reduced market woes.

Nevertheless, the company gains traction from market unpredictability and thus, the recent coronavirus pandemic aided it to earn a sweet spot. Being a high-frequency trader, Virtu Financial suffered from an uninterrupted financial market in recent years. However, the pandemic-led crisis proved to be a boon for the company as market volatility soared.

Moreover, both its Market Making and Execution Services segments have been delivering impressive results for the past many years.

Zacks Rank and Price Performance

Shares of this currently Zacks Rank #2 (Buy) company have gained 44.2% year to date against its industry’s decline of 14.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

This stellar price performance also came against some other finance stocks’ depreciated values. Companies like Oaktree Specialty Lending Corp. (OCSL - Free Report) , Jefferies Financial Group Inc. (JEF - Free Report) and Global Payments Inc. (GPN - Free Report) have lost 67.8%, 27.3% and 19.4%, respectively, in the same time frame.

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