Virtu Financial, Inc. VIRT reported fourth-quarter 2024 adjusted earnings per share (EPS) of $1.14, which outpaced the Zacks Consensus Estimate by 32.6%. The bottom line jumped more than four-fold year over year.

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Adjusted net trading income improved more than 75% year over year to $457.7 million in the quarter under review. It beat the consensus estimate by 14.7%.

The strong fourth-quarter results were aided by a strong revenue contribution from the Market Making segment and Execution Services segment. Higher net trading income and commissions supported these two segments. However, the upside was partly offset by an elevated overall expense level.

Virtu Financial, Inc. Price, Consensus and EPS Surprise

Virtu Financial, Inc. price-consensus-eps-surprise-chart | Virtu Financial, Inc. Quote

Q4 Performance Details

Revenues from commissions, net and technology services amounted to $140.5 million, rising 22.8% year over year. The metric beat the consensus mark and our model estimate of $127.4 million. Interest and dividend income of $123.8 million fell from $154.7 million a year ago and fell short of the consensus mark and our estimate of $146 million.

Adjusted EBITDA jumped to $283.5 million in the quarter under review from $99 million a year ago and surpassed our model estimate of $175.8 million. Adjusted EBITDA margin of 57.5% improved 2,400 basis points year over year.

Total operating expenses increased to $631.7 million from $519.2 million in the year-ago quarter, higher than our estimate of $526.1 million. The year-over-year rise was due to higher net brokerage, exchange, clearance fees and payments for order flow, employee compensation and payroll taxes, and operations and administrative.

Q4 Segmental Update

Market Making: Adjusted net trading income was $347.9 million in the fourth quarter, up 107.7% year over year and surpassed our estimate of $236.9 million. The segment’s revenues rose 67.5% year over year to $706.5 million, higher than the Zacks Consensus Estimate and our estimate of $502.6 million.

Execution Services: The unit recorded an adjusted net trading income of $109.8 million in the quarter under review, which grew 17.6% year over year. Also, the metric beat our estimate of $101.5 million. Total revenues of $136.7 million grew 28.3% year over year and surpassed the consensus mark and our estimate of $127.4 million.

Financial Update (as of Dec. 31, 2024)

Virtu Financial exited the fourth quarter with cash and cash equivalents of $872.5 million, which rose from the 2023-end level of $820.4 million. Total assets of $15.3 billion increased from the $14.5 billion figure at 2023-end.

Long-term borrowings, net, amounted to $1.74 billion, up marginally from the 2023-end level of $1.73 billion. Short-term borrowings totaled $38.5 million.

Total equity of $1.49 billion increased from the $1.41 billion level at 2023-end.

Share Repurchase and Dividend Update

As part of the share repurchase program, Virtu Financial bought back 1.7 million shares worth $57.1 million in the fourth quarter of 2024. It had a leftover capacity of $423.8 million under its buyback authorization for future purchases.

VIRT announced a cash dividend of 24 cents per share. The dividend will be paid out on March 17, 2024, to shareholders of record as of Feb. 28.

VIRT’s Zacks Rank

VIRT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other Finance Sector Players

Here are some other Finance sector players that have reported fourth-quarter results so far. The bottom-line results of Discover Financial Services DFS, American Express Company AXP and Synchrony Financial SYF beat the respective Zacks Consensus Estimate.

Discover Financial reported fourth-quarter 2024 adjusted EPS of $5.11, which comfortably beat the Zacks Consensus Estimate of $3.17. Also, the bottom line jumped more than three-fold year over year. Discover Financial's revenues, net of interest expenses, rose 13.9% year over year to $4.8 billion. The top line also beat the consensus mark by 8.4%.

American Express reported fourth-quarter 2024 EPS of $3.04, which beat the Zacks Consensus Estimate by a whisker. The bottom line climbed 16% year over year. Total revenues net of interest expense amounted to $17.2 billion, which also beat the Zacks Consensus Estimate by a whisker. The top line improved 8.7% year over year in the quarter under review.

$Synchrony Financial(SYF-B)$ reported fourth-quarter 2024 adjusted EPS of $1.91, which beat the Zacks Consensus Estimate of $1.90. The bottom line also increased from $1.03 per share a year ago. Net interest income improved 2.7% year over year to $4.6 billion in the fourth quarter. However, it missed the consensus mark by a whisker.

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