Virtu Financial Shares Drop As Lower Trading Volume In US Equities Hits Bottomline

  • Virtu Financial Inc VIRT reported a second-quarter FY21 revenue decline of 39.4% year-on-year to $548.97 million, beating the analyst consensus of $381 million.
  • Lower trading volumes in U.S. equities drove the decrease.
  • Adjusted Net Trading Income decreased 48.9% Y/Y to $341.8 million, Market Making segment revenue declined 47% Y/Y to $402.54 million, and Execution Services segment revenue reduced 6.7% Y/Y to $138.13 million. Corporate revenue was $8.29 million.
  • Adjusted EBITDA margin contracted 1,490 bps to 57.7%.
  • Non-GAAP EPS of $0.63 missed the analyst consensus of $0.81.
  • Virtu held $915.3 million in cash and equivalents and repurchased shares worth $101.3 million.
  • The results reflect a resilient and balanced business model against a more muted market activity backdrop in the Q2, CEO Douglas Cifu stated.
  • The board declared a quarterly cash dividend of $0.24 per share payable on Sep. 15 to shareholders of record on Sep. 1.
  • Price action: VIRT shares traded lower by 6.10% at $24.24 on the last check Wednesday.
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