Virtus Investment Q4 adjusted EPS beats expectations

Overview

• Investment management firm's Q4 adjusted EPS beat analyst expectations

• Q4 revenue declined 4% from prior quarter due to lower average assets under management

• Company repurchased 60,292 shares for $10 mln during the quarter

Outlook

• Virtus Investment Partners did not provide specific guidance for future quarters or the full year

Result Drivers

• NET OUTFLOWS - Virtus reported net outflows of $8.1 bln, driven by outflows in U.S. retail funds, institutional, and retail separate accounts, partially offset by positive ETF flows

• DECLINING REVENUES - Revenue decreased 4% from the prior quarter due to lower average assets under management

• LOWER SALES - Institutional sales fell to $1.4 bln from $2.0 bln, influenced by a decrease in CLO issuance

Key Details

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 $169.50, about 12.3% above its February 5 closing price of $150.96

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nBw34p01Pa

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