Will Strong Market Making Unit Aid Virtu Financial's Q1 Earnings?
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Virtu Financial, Inc. VIRT is scheduled to release first-quarter 2025 results on April 23, before the opening bell. The Zacks Consensus Estimate for earnings is pegged at $1.14 per share, which indicates an improvement of 50% from the prior-year quarter’s number. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
The first-quarter earnings estimate has witnessed five upward estimate revisions against no downward movements over the past 30 days. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $460 million, implying 25.3% growth from the year-ago quarter’s figure.
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Virtu Financial’s Earnings Surprise History
VIRT’s bottom line beat estimates in each of the trailing four quarters, the average surprise being 25.09%. This is depicted in the chart below:
Virtu Financial, Inc. Price and EPS Surprise
Virtu Financial, Inc. price-eps-surprise | Virtu Financial, Inc. Quote
What Our Quantitative Model Unveils for VIRT
Our proven model predicts an earnings beat for Virtu Financial this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.
Earnings ESP: Virtu Financial has an Earnings ESP of +3.08% because the Most Accurate Estimate of $1.17 per share is pegged higher than the Zacks Consensus Estimate of $1.14. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: VIRT currently carries a Zacks Rank of 3.
Factors Likely to Shape VIRT’s Q1 Results
The top line of Virtu Financial is likely to have gained on the back of higher net trading income, commissions and technology services revenues. However, a decline in interest and dividend income is expected to have hurt revenue growth in the first quarter.
The Zacks Consensus Estimate for overall net trading income is $461 million, which indicates a 13% rise from the prior year's quarter figure. The consensus mark for commissions and technology services revenues is $139 million, implying 16.8% growth year over year.
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Our forecast for these two revenue components implies an increase of 12.9% and 17.4%, respectively, from the corresponding figures of the prior-year quarter.
The Zacks Consensus Estimate for interest and dividends income is pegged at $105 million, which implies a 0.9% dip from the year-ago quarter’s figure.
Trading income in the Market Making segment is expected to have benefited from strength in the customer and non-customer market-businesses. The Zacks Consensus Estimate for adjusted net trading income in the Market Making segment is pegged at $347 million, indicating a 26.6% year-over-year rise.