Virtu Financial Q3 revenue beats estimates on higher trading income

Overview

• US electronic market maker's Q3 revenue rose 40% yr/yr, beating analyst expectations

• Normalized adjusted EPS for Q3 beat analyst expectations

• Company board approved move of legal incorporation from Delaware to Texas

Outlook

• Company did not provide specific financial guidance or outlook for future periods in its press release

Result Drivers

• MARKET MAKING - Co said higher trading income from market making activities drove revenue growth

• EXECUTION SERVICES - Increased commissions and technology services contributed to segment revenue

• INTEREST AND DIVIDENDS - Higher interest and dividend income added to overall revenue

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the investment banking & brokerage services peer group is "buy"

• Wall Street's median 12-month price target for Virtu Financial Inc is $70.00, about 32% above its November 4 closing price of $53.03

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)