2023-04-20 13:40:27 ET
Virtu Financial ( NASDAQ: VIRT ) fell ~5% Thursday noon as the financial services company's Q1 EPS nearly halved on a yearly basis.
Q1 normalized adjusted EPS came in at $0.74, down by 41.73% from $1.27 in the year-ago quarter. The non-GAAP EPS beat Wall Street consensus by $0.15.
Revenues fell 12.9% to $610M from $701M. Net trading income decreased to $412M from $522M, while commissions, net and technology services reduced to $121M from $155M. Meanwhile, interest and dividends income increased to $73M from $21M.
Here is a look at the company's financial trends:
Adjusted EBITDA fell to $207M from $344M.
As of Mar. 31, Virtu had $809.2M in cash, cash equivalents and restricted cash, and total long-term debt outstanding in an aggregate principal amount of $1.81B.
The results follow the April 11 upgrade of Virtu to Equal-Weight from Underweight by Morgan Stanley.
The company is a potential beneficiary in an "uncertain and volatile backdrop," and can support revenues and upward estimate revisions, Morgan Stanley analyst Michael Cyprys had said in a research note.
The sell-side analysts and Seeking Alpha authors give the stock a Buy rating, while the Quant Rating system gives the stock a Hold rating.
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Virtu Financial falls as Q1 EPS nearly halves