Virtu Financial Inc (VIRT)

Virtu Financial Inc (VIRT) stock fell by 9.06% due to disappointing results for the fourth quarter of 2023. The company's adjusted earnings per share (EPS) for the quarter came in at 27 cents, missing the Zacks Consensus Estimate by a significant 35.7% and marking a 27% decline compared to the previous year.

• Financial Highlights: Revenues from commissions, net, and technology services declined by 3% year over year to $114.4 million. However, interest and dividends income saw a substantial increase of 142.8% year over year in Q4, reaching $154.7 million. Adjusted EBITDA for the quarter was $99 million, down 21.1% from the previous year, with a corresponding decline in the adjusted EBITDA margin from 45.8% to 37.9%. Total operating expenses for Q4 amounted to $519.2 million, reflecting a 13.3% increase from the previous year.
• Segmental Performance: In terms of segmental performance, the Market Making segment reported an adjusted net trading income of $167.5 million, representing a 9.3% decline from the previous year. Meanwhile, the Execution Services segment witnessed an increase of 4.5% in adjusted net trading income, totaling $93.4 million in Q4.
• Share Repurchase and Dividend: During 2023, Virtu Financial conducted share buybacks totaling $210 million and announced a cash dividend of 24 cents per share, scheduled for payment on March 15, 2024, to shareholders of record as of March 1, 2024.

Shares of Virtu (VIRT) fell by 8.50% to $16.89 today following the news that the SEC filed a lawsuit against Virtu, alleging that the market maker failed to protect sensitive client trade information, allowing proprietary traders access to it. Virtu denies the allegations, stating that it engaged in settlement discussions with the SEC, which it believes are driven more by politics and headlines than facts and the law.

https://www.ft.com/content/c9bb0089-7652-41f0-ba28-d93f12a89917