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Virtu Financial Inc's (VIRT - Free Report) first-quarter 2020 earnings per share of $2.05 beat the Zacks Consensus Estimate by 35.8%. Moreover, the bottom line skyrocketed around 503% year over year.
The company benefited from the market volatility amid the COVID-19 outbreak.
Revenues of $784 million soared 242.4% 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 33.8%.
Adjusted trading income of the company increased 242.8% to $784.5 million year over year.
In the quarter under review, adjusted EBITDA jumped 358.6% to $569.7 million.
Total operating expenses surged 41.8% year over year to $537.8 million. This upside was owing to higher brokerage, exchange and clearance fees, communication and data processing, employee compensation and payroll taxes, payments for order flow, etc.
Segmental Update
Adjusted net trading income from the Marketing Making segment ascended 267% year over year in the quarter under review. Under this segment, adjusted net trading income from Global Equities rose 309.5% year over year while the same from Global FICC, Options and Other climbed 123.1% year over year.
Adjusted net trading income from its Execution Services soared 159% from the prior-year quarter’s figure.
Dividend Update
The company's board of directors declared a quarterly cash dividend of 24 cents per share, payable Jun 15, 2020 to its shareholders of record as of Jun 1.
Financial Update
As of Mar 31, 2020, the company had total assets worth $10.9 billion, up 14.3% from the level at 2019 end.
It exited the quarter with total equity of $1.5 billion, up 24.4% from the level on Dec 31, 2019.
The company exited the first quarter with $710.5 million of cash and cash equivalents, down 3% from the 2019-end level.
In the quarter under review, long-term borrowings dipped 0.1% from the level at 2019 end.
Of the other players from the same space that reported first-quarter results so far, Global Payments, Inc.’s (GPN - Free Report) and American Express Company’s (AXP - Free Report) bottom-line results beat the respective Zacks Consensus Estimate while that of Discover Financial Services (DFS - Free Report) missed the mark.
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Virtu Financial (VIRT) Q1 Earnings Beat Estimates, Soar Y/Y
Virtu Financial Inc's (VIRT - Free Report) first-quarter 2020 earnings per share of $2.05 beat the Zacks Consensus Estimate by 35.8%. Moreover, the bottom line skyrocketed around 503% year over year.
The company benefited from the market volatility amid the COVID-19 outbreak.
Revenues of $784 million soared 242.4% 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 33.8%.
Virtu Financial Inc Price and EPS Surprise
Virtu Financial Inc price-eps-surprise | Virtu Financial Inc Quote
Quarterly Operational Update
Adjusted trading income of the company increased 242.8% to $784.5 million year over year.
In the quarter under review, adjusted EBITDA jumped 358.6% to $569.7 million.
Total operating expenses surged 41.8% year over year to $537.8 million.
This upside was owing to higher brokerage, exchange and clearance fees, communication and data processing, employee compensation and payroll taxes, payments for order flow, etc.
Segmental Update
Adjusted net trading income from the Marketing Making segment ascended 267% year over year in the quarter under review. Under this segment, adjusted net trading income from Global Equities rose 309.5% year over year while the same from Global FICC, Options and Other climbed 123.1% year over year.
Adjusted net trading income from its Execution Services soared 159% from the prior-year quarter’s figure.
Dividend Update
The company's board of directors declared a quarterly cash dividend of 24 cents per share, payable Jun 15, 2020 to its shareholders of record as of Jun 1.
Financial Update
As of Mar 31, 2020, the company had total assets worth $10.9 billion, up 14.3% from the level at 2019 end.
It exited the quarter with total equity of $1.5 billion, up 24.4% from the level on Dec 31, 2019.
The company exited the first quarter with $710.5 million of cash and cash equivalents, down 3% from the 2019-end level.
In the quarter under review, long-term borrowings dipped 0.1% from the level at 2019 end.
Zacks Rank and Performance of Other Players
Virtu Financial sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Of the other players from the same space that reported first-quarter results so far, Global Payments, Inc.’s (GPN - Free Report) and American Express Company’s (AXP - Free Report) bottom-line results beat the respective Zacks Consensus Estimate while that of Discover Financial Services (DFS - Free Report) missed the mark.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>