Virtu Financial(VIRT) ZACKS·2025-01-29 18:46Earnings Performance - Virtu Financial reported Q4 2024 adjusted EPS of $1.14, 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 $283.5 million from $99 million a year ago, exceeding the model estimate of $175.8 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 $127.4 million [3] - Interest and dividend income fell to $123.8 million from $154.7 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 $347.9 million, exceeding the estimate of $236.9 million, while revenues rose 67.5% to $706.5 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 $109.8 million, beating the estimate of $101.5 million, with total revenues growing 28.3% to $136.7 million, surpassing the consensus estimate of $127.4 million [7] Financial Position - Cash and cash equivalents stood at $872.5 million at the end of Q4 2024, up from $820.4 million at the end of 2023 [8] - Total assets increased to $15.3 billion from $14.5 billion at the end of 2023, while total equity rose to $1.49 billion from $1.41 billion [8] - Long-term borrowings, net, increased marginally to $1.74 billion from $1.73 billion at the end of 2023, and short-term borrowings totaled $38.5 million [8] Share Repurchase and Dividend - Virtu Financial repurchased 1.7 million shares worth $57.1 million in Q4 2024, with $423.8 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, 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, 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, slightly beating the consensus estimate of $1.90, with net interest income rising 2.7% year over year to $4.6 billion [15]