Virtu Financial Q2 revenue beats on market making segment growth
VIRT•Key quarterly figures
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $1.19 bln | $651.21 mln (4 Analysts) |
| Q2 Normalized Adjusted EPS | Beat | $1.82 | $1.72 (7 Analysts) |
| Q2 Normalized Adjusted Net Income | Beat | $291.50 mln | $236.70 mln (4 Analysts) |
| Q2 Net Income | $284.90 mln |
Guidance and analyst expectations
Virtu did not provide specific guidance or an outlook for the current or upcoming periods.
The current average analyst rating on the shares is "buy," with 3 "strong buy" or "buy," 3 "hold" and 1 "sell" or "strong sell". The average consensus recommendation for the investment banking and brokerage services peer group is "buy."
Wall Street's median 12-month price target for Virtu Financial Inc is $70.00, about 20.8% above its July 29 closing price of $57.93. The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago.
Q2 revenue and earnings beat estimates
Virtu Financial said second-quarter revenue rose 19% year over year, beating analyst expectations. Normalized adjusted EPS for the quarter also beat analyst expectations, and adjusted net income exceeded estimates.
Market making, commissions and interest income drove growth
The company said the Market Making segment drove most of the increase in trading income and total revenue. Commissions and technology services revenue increased from the prior year, and interest and dividends income also rose compared with the prior year.
