Virtu Financial Q2 revenue beats on market making segment growth

Overview

• US electronic trading firm's Q2 revenue rose 19% yr/yr, beating analyst expectations

• Normalized Adjusted EPS for Q2 beat analyst expectations

• Q2 Adjusted Net Income exceeded analyst estimates

Outlook

• Company did not provide specific guidance or outlook for the current or upcoming periods

Result Drivers

• MARKET MAKING GROWTH - Market Making segment drove most of the increase in trading income and total revenue

• HIGHER COMMISSIONS AND TECH SERVICES - Commissions and technology services revenue increased from prior year

• INCREASED INTEREST AND DIVIDENDS INCOME - Interest and dividends income rose compared to prior year

Company press release: ID:nGNX9mCw1f

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the investment banking brokerage services peer group is "buy"

• Wall Street's median 12-month price target for Virtu Financial Inc is $70.00, about 20.8% above its July 29 closing price of $57.93

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)