Virtus Investment Partners Q2 profit misses estimates
VRTS•Key reported figures
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $201.40 million | $184.25 million (2 Analysts) |
| Q2 Adjusted EPS | Miss | $5.54 | $6.09 (4 Analysts) |
| Q2 EPS | $6.68 | ||
| Q2 Net Income | $45.30 million |
Drivers behind the quarter
- Higher fee rate - The company said adjusted revenue rose 1% from the prior quarter due to a higher average fee rate, partially offset by lower average assets under management.
- Improved net flows - Net flows of ($5.6) billion improved from ($8.4) billion in the prior quarter, with positive ETF and wealth management flows partly offsetting outflows in other products.
- Seasonal expense impact - The decrease in operating expenses from the prior quarter mainly reflected seasonal employment expense patterns and lower other operating expenses.
Q2 profit and revenue update
Virtus Investment Partners said second-quarter adjusted earnings per share missed analyst expectations, while revenue fell 4% year over year. Assets under management rose to $152.2 billion from the prior quarter.
The company repurchased $10 million in shares during the quarter.
