Virtu Financial Q3 revenue beats estimates on higher trading income
VIRT•Virtu Financial’s third-quarter revenue rose 40% year over year to $1.15 billion, beating the $647.03 million consensus estimate. Normalized adjusted EPS was $1.77 versus estimates of $1.52, and the board approved moving the company’s legal incorporation from Delaware to Texas.
1. Revenue and earnings beat
Virtu Financial reported third-quarter revenue of $1.15 billion, up 40% year over year and above the $647.03 million analyst estimate. Normalized adjusted EPS was $1.77, beating the $1.52 estimate; adjusted net income was $283.50 million, compared with a $209.05 million estimate.
2. Trading income drives growth
The company said higher trading income from market-making activities drove revenue growth. Increased commissions and technology services contributed to execution services revenue, while higher interest and dividend income also added to revenue.
3. Board approves incorporation move
Virtu’s board approved moving the company’s legal incorporation from Delaware to Texas. The company did not provide specific financial guidance for future periods.
