Virtus Investment Partners Q2 profit misses estimates

Overview

• U.S. asset manager's Q2 adjusted EPS missed analyst expectations

• Q2 revenue fell 4% yr/yr; assets under management rose to $152.2 bln from prior quarter

• Company repurchased $10 mln in shares during the quarter

Outlook

• Company did not provide specific guidance or outlook for future quarters or full yr in the press release

Result Drivers

• HIGHER FEE RATE - Co said adjusted revenue rose 1% from prior qtr due to a higher average fee rate, partially offset by lower average assets under management

• IMPROVED NET FLOWS - Net flows of ($5.6) bln improved from ($8.4) bln in prior qtr, with positive ETF and wealth management flows partly offsetting outflows in other products

• SEASONAL EXPENSE IMPACT - Decrease in operating expenses from prior qtr mainly reflected seasonal employment expense patterns and lower other operating expenses

Company press release: ID:nBw8Nzwkga

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "buy."

• Wall Street's median 12-month price target for Virtus Investment Partners Inc is $147.00, about 12.4% below its July 29 closing price of $167.79

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 5 three months ago

Reuters Recommended Reads

• July 28 - AllianceBernstein Q2 adjusted EPS misses estimates on equity outflows

• July 28 - Invesco Q2 adjusted EPS beats analyst estimates on record inflows

• July 30 - Amundi beats estimates with Q2 net inflows, profit jumps 29%

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)