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Virtu Financial's (VIRT) Q4 Earnings and Revenues Beat Mark
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Virtu Financial Inc's (VIRT - Free Report) fourth-quarter 2021 earnings per share of $1.19 beat the Zacks Consensus Estimate by 43.4% owing to better revenues and higher trading volumes. The bottom line inched up 0.8% year over year.
Operating revenues of $486 million improved 6.6% year over year owing to higher trading volumes in U.S. equities.
The top line also beat the consensus mark by 28.9%.
Virtu Financial, Inc. Price, Consensus and EPS Surprise
In the quarter under review, adjusted EBITDA dipped 4.5% to $328.4 million.
Total operating expenses increased 14.7% year over year to $478.6 million.
This is due to high employee compensation and payroll taxes, interest and dividend expense, depreciation and amortization, termination of office leases, transaction fees and expenses.
Segmental Update
Net trading income from the Market Making segment was up 9.1% year over year to $508.3 million in the quarter under review.
Net trading income from Execution Services came in at $5 million, down from the year-ago quarter’s figure of $39 million.
Dividend and Share Repurchase Update
Virtu Financial's board of directors declared a quarterly cash dividend of 24 cents per share to be paid out on Mar 15, 2022, to its shareholders of record as of Mar 1, 2022.
VIRT bought back shares worth $101.6 million under the share repurchase program.
Virtu Financial now has $737.2 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 Dec 31, 2021)
Virtu Financial had total assets worth $10.3 billion, up 3.6% from the level at 2020 end.
VIRT exited the December quarter with total equity of $1.8 billion, up 0.5% from the level on Dec 31, 2020.
Virtu Financial exited the fourth quarter with $1 billion of cash and cash equivalents, up 20.4% from the 2020-end level.
In the quarter under review, long-term borrowings slipped 2.1% to $1.6 billion from the level at 2020 end.
Full-Year Update
Total revenues of Virtu Financial decreased 13.2% year over year due to decreased volatility and volumes across global markets.
Net trading income was down 15.6% year over year while adjusted EBITDA was down 21% year over year. Earnings per share for 2021 came in at $3.91, down 24.2% year over year.
Of the finance sector players that have reported fourth-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 respective Zacks Consensus Estimate.
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Virtu Financial's (VIRT) Q4 Earnings and Revenues Beat Mark
Virtu Financial Inc's (VIRT - Free Report) fourth-quarter 2021 earnings per share of $1.19 beat the Zacks Consensus Estimate by 43.4% owing to better revenues and higher trading volumes. The bottom line inched up 0.8% year over year.
Operating revenues of $486 million improved 6.6% year over year owing to higher trading volumes in U.S. equities.
The top line also beat the consensus mark by 28.9%.
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 dipped 4.5% to $328.4 million.
Total operating expenses increased 14.7% year over year to $478.6 million.
This is due to high employee compensation and payroll taxes, interest and dividend expense, depreciation and amortization, termination of office leases, transaction fees and expenses.
Segmental Update
Net trading income from the Market Making segment was up 9.1% year over year to $508.3 million in the quarter under review.
Net trading income from Execution Services came in at $5 million, down from the year-ago quarter’s figure of $39 million.
Dividend and Share Repurchase Update
Virtu Financial's board of directors declared a quarterly cash dividend of 24 cents per share to be paid out on Mar 15, 2022, to its shareholders of record as of Mar 1, 2022.
VIRT bought back shares worth $101.6 million under the share repurchase program.
Virtu Financial now has $737.2 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 Dec 31, 2021)
Virtu Financial had total assets worth $10.3 billion, up 3.6% from the level at 2020 end.
VIRT exited the December quarter with total equity of $1.8 billion, up 0.5% from the level on Dec 31, 2020.
Virtu Financial exited the fourth quarter with $1 billion of cash and cash equivalents, up 20.4% from the 2020-end level.
In the quarter under review, long-term borrowings slipped 2.1% to $1.6 billion from the level at 2020 end.
Full-Year Update
Total revenues of Virtu Financial decreased 13.2% year over year due to decreased volatility and volumes across global markets.
Net trading income was down 15.6% year over year while adjusted EBITDA was down 21% year over year. Earnings per share for 2021 came in at $3.91, down 24.2% year over year.
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 fourth-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 respective Zacks Consensus Estimate.