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Virtu Financial's (VIRT) Q2 Earnings Miss Mark, Decrease Y/Y
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Virtu Financial Inc's (VIRT - Free Report) second-quarter 2021 earnings per share of 63 cents miss the Zacks Consensus Estimate of 75 cents by 16% due to lower revenues. The bottom line also decreased 63.4% year over year. The company witnessed muted activity and soft market volumes in the second quarter.
Operating revenues of $342 million declined 48.9% year over year due to weak trading volume in U.S. equities. The top line also missed the consensus mark by 5%.
Virtu Financial, Inc. Price, Consensus and EPS Surprise
In the quarter under review, adjusted EBITDA plunged 59.4% to $197.3 million.
Total operating expenses dropped 17.4% year over year to $413.9 million. This is driven by lower communication and data processing, employee compensation and payroll taxes, interest and dividends expense and a lower debt issue cost related to debt refinancing, prepayment and commitment fees.
Segmental Update
Adjusted net trading income from the Marketing Making segment was down 48.9% year over year to $380.6 million in the quarter under review.
Adjusted net trading income from Execution Services came in at $4.18 million against the year-ago quarter’s negative $0.68 million.
Dividend and Share Repurchase Update
The company's board of directors declared a quarterly cash dividend of 24 cents per share to be paid out on Sep 15, 2021 to its shareholders of record as of Sep 1.
The company bought back shares worth $101.3 million under the share repurchase program.
Virtu Financial now has $241.1 million left under its share buyback authorization for future purchases of shares of Class A Common Stock and Virtu Financial Units.
Financial Update (as of Jun 30, 2021)
The company had total assets worth $10.3 billion, up 3.8% from the level at 2020 end.
It exited the June quarter with total equity of $1.9 billion, up 3.7% from the level on Dec 31, 2020.
The company exited the second quarter with $848.1 million in cash and cash equivalents, down 4.7% from the 2020-end level.
In the quarter under review, long-term borrowings dipped 2.2% to $1.6 billion from the level at 2020 end.
Of the finance sector players that have reported second-quarter results so far, the bottom-line results of American Express Company (AXP - Free Report) , Synchrony Financial (SYF - Free Report) and Discover Financial Services (DFS - Free Report) beat the Zacks Consensus Estimate.
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Virtu Financial's (VIRT) Q2 Earnings Miss Mark, Decrease Y/Y
Virtu Financial Inc's (VIRT - Free Report) second-quarter 2021 earnings per share of 63 cents miss the Zacks Consensus Estimate of 75 cents by 16% due to lower revenues. The bottom line also decreased 63.4% year over year.
The company witnessed muted activity and soft market volumes in the second quarter.
Operating revenues of $342 million declined 48.9% year over year due to weak trading volume in U.S. equities. The top line also missed the consensus mark by 5%.
Virtu Financial, Inc. Price, Consensus and EPS Surprise
Virtu Financial, Inc. price-consensus-eps-surprise-chart | Virtu Financial, Inc. Quote
Quarterly Operational Update
In the quarter under review, adjusted EBITDA plunged 59.4% to $197.3 million.
Total operating expenses dropped 17.4% year over year to $413.9 million.
This is driven by lower communication and data processing, employee compensation and payroll taxes, interest and dividends expense and a lower debt issue cost related to debt refinancing, prepayment and commitment fees.
Segmental Update
Adjusted net trading income from the Marketing Making segment was down 48.9% year over year to $380.6 million in the quarter under review.
Adjusted net trading income from Execution Services came in at $4.18 million against the year-ago quarter’s negative $0.68 million.
Dividend and Share Repurchase Update
The company's board of directors declared a quarterly cash dividend of 24 cents per share to be paid out on Sep 15, 2021 to its shareholders of record as of Sep 1.
The company bought back shares worth $101.3 million under the share repurchase program.
Virtu Financial now has $241.1 million left under its share buyback authorization for future purchases of shares of Class A Common Stock and Virtu Financial Units.
Financial Update (as of Jun 30, 2021)
The company had total assets worth $10.3 billion, up 3.8% from the level at 2020 end.
It exited the June quarter with total equity of $1.9 billion, up 3.7% from the level on Dec 31, 2020.
The company exited the second quarter with $848.1 million in cash and cash equivalents, down 4.7% from the 2020-end level.
In the quarter under review, long-term borrowings dipped 2.2% to $1.6 billion from the level at 2020 end.
Zacks Rank
Virtu Financial currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Finance Sector Releases
Of the finance sector players that have reported second-quarter results so far, the bottom-line results of American Express Company (AXP - Free Report) , Synchrony Financial (SYF - Free Report) and Discover Financial Services (DFS - Free Report) beat the Zacks Consensus Estimate.