Virtu Financial, Inc. (VIRT) delivered a strong performance in the third quarter, surpassing analyst expectations on both earnings and revenue fronts. The company reported adjusted earnings per share of 82 cents, exceeding the consensus estimate of 79 cents. This positive performance was driven by a robust increase in trading income, which surged 40.5% to $444.0 million for the quarter compared to $316.1 million in the same period last year.
Adjusted net trading income also saw a significant rise, climbing 30.2% to $388.03 million in the third quarter, surpassing the consensus estimate of $376.04 million. The company’s adjusted EBITDA increased by an impressive 54% to $214.8 million, resulting in a corresponding margin of 55.4%.
Virtu’s financial position remains strong with $738.2 million in cash and equivalents as of September 30. The company also has total long-term debt outstanding in an aggregate principal amount of $1.769 billion.
In terms of share buybacks, Virtu has repurchased approximately 49.2 million shares of Class A Common Stock and Virtu Financial Units for roughly $1.240 billion since the program’s inception in November 2020. The company still has approximately $479.3 million remaining for future purchases under the program.
In addition to the strong financial performance, Virtu declared a quarterly cash dividend of 24 cents per share, payable on December 15 to shareholders of record as of December 1.
Despite these positive developments, VIRT shares are currently trading lower by 6.18% to $30.35 at the time of writing. The market reaction suggests investors may be taking a cautious approach, potentially focusing on other factors or broader market trends.