Virtu Financial Beats Market Expectations in Q4 2019 Forecast

The company forecasts that it will report a net loss between $29 and $31 million.

Virtu Financial, Inc., a financial services firm, has published its preliminary estimated financial results for the fourth quarter, ended on the 31st of December, 2019, this week.

During Q4 of 2019, the high-speed trading firm, reported its preliminary estimated Q4 normalized adjusted earnings per share (EPS) of 26 cents-27 cents, which is well above the consensus estimate of 20 cents.

For the period, Virtu expects to report a net loss between $29 and $31 million. In the same period of the previous year, Virtu reported a net income of $148 million.

For the final quarter of 2019, Virtu expects that it has achieved a net trading income between $227 and $229 million. Although this is only an estimate, the range is significantly lower than the net trading income of $366 million reported in the final quarter of 2018 (lower by around 37 percent). However, adjusted net trading income fell between $256 and $258 million – which is well above consensus.

On Monday, the company also provided some metrics for January 2020. Specifically, the financial firm said that it expects the monthly net trading income to fall between $90 and $94 million.

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FINRA fines Virtu

January proved to be a difficult start for Virtu, with the Financial Industry Regulatory Authority (FINRA), fining Virtu Americas LLC (formerly KCG Americas LLC) $125,000 for a handful of violations and failures.

Furthermore, the trading solutions provider also expects realized synergies from its acquisition of ITG to be between $135 and $138 million for the whole of 2019. For 2020, the company forecasts that it will achieve the top of that range.

As Finance Magnates reported, Virtu officially announced its intention to acquire ITG back in November of 2018. As part of the agreement, the trading firm will buy all outstanding shares of ITG’s Common Stock for $30.30 per share in cash.

In Q4 of 2019, the company forecasts a net loss made from brokerage, exchange and clearance fees of around $72 million, which is actually less than the $74 million loss it posted in the final quarter of 2018.

Virtu Financial will be publishing its actual results for the final quarter of last year on the 11th of February, 2020.

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