Virtus Investment's Q2 revenue beats expectations, AUM at $170 bln
Overview
Virtus Q2 revenue of $210.5 mln beats analyst expectations, per LSEG data
Adjusted EPS of $6.25 surpasses consensus, driven by lower employment expenses
Assets under management rise to $170.7 bln, despite negative net flows
Result Drivers
LOWER EMPLOYMENT EXPENSES - Decline in operating expenses driven by reduced employment costs and adjustments in contingent consideration
NEGATIVE NET FLOWS - Net flows of ($3.9) bln due to higher redemptions in large-cap growth and small/mid-cap strategies
ETF INFLOWS - Positive net flows in exchange-traded funds contributed to asset growth, despite overall negative net flows
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $210.50 mln | $193.20 mln (1 Analyst) |
Q2 Adjusted EPS | Beat | $6.25 | $6.21 (4 Analysts) |
Q2 EPS |
| $6.12 |
|
Q2 Net Income |
| $42.40 mln |
|
Q2 Operating Expenses |
| $165.30 mln |
|
Q2 Operating Income |
| $45.20 mln |
|
Q2 Operating Margin |
| 21.5% |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the investment management & fund operators peer group is "buy."
Wall Street's median 12-month price target for Virtus Investment Partners Inc is $180.00, about 18.7% below its July 24 closing price of $213.65
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 6 three months ago
Press Release: ID:nBw1Jngy3a
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