Market Overview

Virtu Financial's Earnings: A Preview

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Virtu Financial (NASDAQ: VIRT) announces its next round of earnings this Friday, November 06. Here is Benzinga's everything-that-matters guide for this Friday's Q3 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see Virtu Financial reporting earnings of $0.72 per share on sales of $351.71 million. In the same quarter last year, Virtu Financial announced EPS of $0.21 on revenue of $385.36 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 242.86% increase in the company's earnings. Revenue would be down 8.73% from the year-ago period. Virtu Financial's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 1.60 1.39 0.20 0.23
EPS Actual 1.73 2.05 0.27 0.21
Revenue Estimate 649.12 M 563.80 M 238.51 M 247.09 M
Revenue Actual 905.90 M 1.00 B 403.27 M 385.36 M

Stock Performance

Shares of Virtu Financial were trading at $22.44 as of November 04. Over the last 52-week period, shares are up 38.79%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Virtu Financial is scheduled to hold the call at 08:30:00 ET and can be accessed here.

 

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Posted-In: Earnings