Workflow
Virtu Financial Q4 Earnings Beat Estimates on Strong Market Making
VIRTVirtu Financial(VIRT) ZACKS·2025-01-29 18:46

Earnings Performance - Virtu Financial reported Q4 2024 adjusted EPS of 1.14,surpassingtheZacksConsensusEstimateby32.61.14, surpassing the Zacks Consensus Estimate by 32.6% and showing a more than four-fold increase year over year [1] - Adjusted net trading income rose over 75% year over year to 457.7 million, beating the consensus estimate by 14.7% [2] - Adjusted EBITDA surged to 283.5millionfrom283.5 million from 99 million a year ago, exceeding the model estimate of 175.8million,withanadjustedEBITDAmarginof57.5175.8 million, with an adjusted EBITDA margin of 57.5%, up 2,400 basis points year over year [4] Revenue Breakdown - Revenues from commissions, net and technology services increased 22.8% year over year to 140.5 million, surpassing the consensus estimate of 127.4million[3]−Interestanddividendincomefellto127.4 million [3] - Interest and dividend income fell to 123.8 million from 154.7millionayearago,missingtheconsensusestimateof154.7 million a year ago, missing the consensus estimate of 146 million [3] Segment Performance - Market Making segment's adjusted net trading income grew 107.7% year over year to 347.9million,exceedingtheestimateof347.9 million, exceeding the estimate of 236.9 million, while revenues rose 67.5% to 706.5million,surpassingtheconsensusestimateof706.5 million, surpassing the consensus estimate of 502.6 million [6] - Execution Services segment's adjusted net trading income increased 17.6% year over year to 109.8million,beatingtheestimateof109.8 million, beating the estimate of 101.5 million, with total revenues growing 28.3% to 136.7million,surpassingtheconsensusestimateof136.7 million, surpassing the consensus estimate of 127.4 million [7] Financial Position - Cash and cash equivalents stood at 872.5millionattheendofQ42024,upfrom872.5 million at the end of Q4 2024, up from 820.4 million at the end of 2023 [8] - Total assets increased to 15.3billionfrom15.3 billion from 14.5 billion at the end of 2023, while total equity rose to 1.49billionfrom1.49 billion from 1.41 billion [8] - Long-term borrowings, net, increased marginally to 1.74billionfrom1.74 billion from 1.73 billion at the end of 2023, and short-term borrowings totaled 38.5million[8]ShareRepurchaseandDividend−VirtuFinancialrepurchased1.7millionsharesworth38.5 million [8] Share Repurchase and Dividend - Virtu Financial repurchased 1.7 million shares worth 57.1 million in Q4 2024, with 423.8millionremainingunderitsbuybackauthorization[9]−Thecompanyannouncedacashdividendof24centspershare,payableonMarch17,2024,toshareholdersofrecordasofFeb.28[10]IndustryComparison−DiscoverFinancialreportedQ42024adjustedEPSof423.8 million remaining under its buyback authorization [9] - The company announced a cash dividend of 24 cents per share, payable on March 17, 2024, to shareholders of record as of Feb. 28 [10] Industry Comparison - Discover Financial reported Q4 2024 adjusted EPS of 5.11, beating the consensus estimate of 3.17,withrevenuesnetofinterestexpensesrising13.93.17, with revenues net of interest expenses rising 13.9% year over year to 4.8 billion [13] - American Express reported Q4 2024 EPS of 3.04,slightlybeatingtheconsensusestimate,withtotalrevenuesnetofinterestexpenseincreasing8.73.04, slightly beating the consensus estimate, with total revenues net of interest expense increasing 8.7% year over year to 17.2 billion [14] - Synchrony Financial reported Q4 2024 adjusted EPS of 1.91,slightlybeatingtheconsensusestimateof1.91, slightly beating the consensus estimate of 1.90, with net interest income rising 2.7% year over year to $4.6 billion [15]