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Will Escalating Expenses Affect Virtu Financial's Q3 Earnings?
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Key Takeaways
Virtu Financial is set to report Q3 2025 earnings on Oct. 29, with EPS estimated at $1.00.
Higher net trading, commissions and technology revenues are expected to lift quarterly results.
Rising operating, brokerage and payroll expenses may weigh on Virtu Financial's margins.
Virtu Financial, Inc. (VIRT - Free Report) is set to report third-quarter 2025 results on Oct. 29, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $1.00 per share on revenues of $420.1 million.
The third-quarter earnings estimate remained stable over the past seven days. The bottom-line projection indicates a year-over-year increase of 22%. Also, the Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 8.3%.
Image Source: Zacks Investment Research
For full-year 2025, the Zacks Consensus Estimate for Virtu Financial’s revenues is pegged at $1.9 billion, implying a rise of 19.4% year over year. The consensus mark for 2025 earnings per share is pegged at $4.80, indicating a jump of 35.2% on a year-over-year basis.
Virtu Financial beat the consensus estimate for earnings in each of the trailing four quarters, with the average surprise being 14.9%, as you can see below.
Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
VIRT has an Earnings ESP of -7.36% and carries a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping VIRT’s Q3 Results?
Virtu Financial's top line is expected to have been driven by improved net trading income, higher commissions and technology services revenues, along with increased interest and dividends income. The Zacks Consensus Estimate and our estimate for overall net trading income are $489.1 million, which indicates a 10.1% rise from the prior-year quarter.
For commissions and technology services, the consensus estimate is $150 million, indicating a 14% increase year over year and matching our estimate. The Zacks Consensus Estimate for interest and dividends income is pegged at $132.2 million, which implies a 5.5% rise from the year-ago quarter’s figure and aligns with our projection.
Trading income in both the Market Making and Execution Services segments is likely to have witnessed year-over-year improvements. The Zacks Consensus Estimate for net trading income in the Market Making segment is pegged at $485 million, indicating a 10.1% year-over-year rise. For the Execution Services segment’s net trading income, the consensus mark is pinned at $4.1 million, indicating 15.4% growth from the prior-year quarter’s number.
Virtu Financial’s margins are likely to have suffered a blow due to elevated operating costs, which, in turn, are anticipated to have resulted from increased brokerage, exchange, clearance fees and payments for order flow, communication and data processing expenses, as well as employee compensation and payroll taxes. Our estimate for total operating expenses is $617 million, which indicates an increase of 10.2% year over year. Also, we expect interest and dividend expenses to increase 9.9% year over year in the quarter under discussion.
Stocks That Warrant a Look
Here are some companies worth considering from the broader Finance space, as our model shows that these have the right combination of elements to beat on earnings this time:
The Zacks Consensus Estimate for Aon’s bottom line for the to-be-reported quarter is pegged at $2.89 per share, indicating 6.3% year-over-year growth. It has remained stable over the past 60 days. The consensus estimate for Aon’s revenues is pegged at $3.9 billion.
Evercore Inc. (EVR - Free Report) has an Earnings ESP of +12.21% and carries a Zacks Rank #3 at present.
The Zacks Consensus Estimate for Evercore’s bottom line for the to-be-reported quarter is pegged at $2.87 per share, indicating 40.7% year-over-year growth. It beat earnings estimates in each of the past four quarters, with the average surprise being 44.1%. The consensus estimate for Evercore’s revenues is pegged at $899.3 million.
Prudential Financial, Inc. (PRU - Free Report) presently has an Earnings ESP of +1.08% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Prudential Financial’s earnings for the to-be-reported quarter is pegged at $3.64 per share. The consensus estimate for revenues is pegged at $14 billion. Prudential Financial beat earnings estimates in three of the past four quarters and missed once, with the average surprise being 1.1%.
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Will Escalating Expenses Affect Virtu Financial's Q3 Earnings?
Key Takeaways
Virtu Financial, Inc. (VIRT - Free Report) is set to report third-quarter 2025 results on Oct. 29, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $1.00 per share on revenues of $420.1 million.
The third-quarter earnings estimate remained stable over the past seven days. The bottom-line projection indicates a year-over-year increase of 22%. Also, the Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 8.3%.
Image Source: Zacks Investment Research
For full-year 2025, the Zacks Consensus Estimate for Virtu Financial’s revenues is pegged at $1.9 billion, implying a rise of 19.4% year over year. The consensus mark for 2025 earnings per share is pegged at $4.80, indicating a jump of 35.2% on a year-over-year basis.
Virtu Financial beat the consensus estimate for earnings in each of the trailing four quarters, with the average surprise being 14.9%, as you can see below.
Virtu Financial, Inc. Price and EPS Surprise
Virtu Financial, Inc. price-eps-surprise | Virtu Financial, Inc. Quote
Q3 Earnings Whispers for VIRT
Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
VIRT has an Earnings ESP of -7.36% and carries a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping VIRT’s Q3 Results?
Virtu Financial's top line is expected to have been driven by improved net trading income, higher commissions and technology services revenues, along with increased interest and dividends income. The Zacks Consensus Estimate and our estimate for overall net trading income are $489.1 million, which indicates a 10.1% rise from the prior-year quarter.
For commissions and technology services, the consensus estimate is $150 million, indicating a 14% increase year over year and matching our estimate. The Zacks Consensus Estimate for interest and dividends income is pegged at $132.2 million, which implies a 5.5% rise from the year-ago quarter’s figure and aligns with our projection.
Trading income in both the Market Making and Execution Services segments is likely to have witnessed year-over-year improvements. The Zacks Consensus Estimate for net trading income in the Market Making segment is pegged at $485 million, indicating a 10.1% year-over-year rise. For the Execution Services segment’s net trading income, the consensus mark is pinned at $4.1 million, indicating 15.4% growth from the prior-year quarter’s number.
Virtu Financial’s margins are likely to have suffered a blow due to elevated operating costs, which, in turn, are anticipated to have resulted from increased brokerage, exchange, clearance fees and payments for order flow, communication and data processing expenses, as well as employee compensation and payroll taxes. Our estimate for total operating expenses is $617 million, which indicates an increase of 10.2% year over year. Also, we expect interest and dividend expenses to increase 9.9% year over year in the quarter under discussion.
Stocks That Warrant a Look
Here are some companies worth considering from the broader Finance space, as our model shows that these have the right combination of elements to beat on earnings this time:
Aon plc (AON - Free Report) currently has an Earnings ESP of +0.70% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Aon’s bottom line for the to-be-reported quarter is pegged at $2.89 per share, indicating 6.3% year-over-year growth. It has remained stable over the past 60 days. The consensus estimate for Aon’s revenues is pegged at $3.9 billion.
Evercore Inc. (EVR - Free Report) has an Earnings ESP of +12.21% and carries a Zacks Rank #3 at present.
The Zacks Consensus Estimate for Evercore’s bottom line for the to-be-reported quarter is pegged at $2.87 per share, indicating 40.7% year-over-year growth. It beat earnings estimates in each of the past four quarters, with the average surprise being 44.1%. The consensus estimate for Evercore’s revenues is pegged at $899.3 million.
Prudential Financial, Inc. (PRU - Free Report) presently has an Earnings ESP of +1.08% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Prudential Financial’s earnings for the to-be-reported quarter is pegged at $3.64 per share. The consensus estimate for revenues is pegged at $14 billion. Prudential Financial beat earnings estimates in three of the past four quarters and missed once, with the average surprise being 1.1%.