NEW YORK - Virtu Financial, Inc. (NASDAQ: NASDAQ:VIRT), a leading technology-enabled market maker and liquidity provider to the global markets, reported a significant earnings and revenue beat for the second quarter ended June 30, 2024.
The company's earnings per share (EPS) came in at $0.83, surpassing the analyst consensus of $0.60 by $0.23. Total revenue for the quarter was $692.98 million, more than doubling the consensus estimate of $330.59 million.
The substantial outperformance in both earnings and revenue compared to analyst expectations drove Virtu Financial's stock up by 3%.
Virtu's impressive second-quarter performance was marked by a 36.7% increase in total revenues compared to the same quarter last year, which stood at $506.9 million. Net income also saw a significant jump, totaling $128.1 million for the quarter, compared to $29.5 million in the prior year quarter. This robust growth in net income represents an increase of 119.2% on a normalized adjusted basis, from $61.7 million in the second quarter of 2023 to $135.3 million in the current quarter.
The company's market making segment was a major contributor to the revenue surge, with trading income, net, increasing 39.3% to $426.4 million for the quarter compared to $306.2 million for the same period in 2023. Adjusted Net Trading Income also increased by 38.2% to $385.1 million for the quarter, compared to $278.7 million for the same period in 2023.
Virtu's CEO commented on the results, attributing the strong quarter to the firm's strategic initiatives and robust client engagement. The company's success in providing innovative trading solutions and delivering liquidity in a dynamic market environment was evident in the substantial growth figures.
The company's financial position remains strong, with $716.7 million in cash, cash equivalents, and restricted cash as of June 30, 2024.
In addition to the quarterly results, Virtu announced a quarterly cash dividend of $0.24 per share, payable on September 15, 2024, to shareholders of record as of September 1, 2024. The company also continued its share buyback program, repurchasing $31.0 million, or 1.4 million shares, under the Share Repurchase Program.
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