VRTS.O

Virtus Investment Partners Reports Third Quarter 2024 Financial Results

authorIntellectia.AI

2024-10-252mins

Virtus Investment Partners Reports Third Quarter 2024 Financial Results

Virtus Investment Partners, Inc. (NYSE: VRTS) released its financial results for the third quarter ended September 30, 2024.

Key Financial Metrics

Metric Q3 2024 Q2 2024 QoQ Comparison Consensus Estimate
Total Revenue (GAAP) $6.6 billion $6.15 billion +7% $208.14 million
Earnings Per Share (EPS) $6.92 $6.53 +6% $6.8

Interpretation : Virtus Investment Partners demonstrated positive momentum with a 7% revenue increase and a 6% rise in adjusted EPS quarter-over-quarter, outperforming consensus EPS estimates.

Revenue by Segment

Segment Q3 2024 Revenue QoQ Growth
Institutional Sales $1.2 billion +3%
Retail Separate Accounts $2.3 billion +4%
Open-end Fund Sales $3.1 billion +12%

Interpretation : The company's revenue growth was driven by substantial increases across all sales segments, notably a 12% surge in open-end fund sales, which underscores robust demand for fixed income and alternative strategies.

Developments and Highlights

  • Increased quarterly dividend by 18% to $2.25 per share.
  • Repurchased 72,850 shares worth $14.9 million.
  • Reduced gross debt by 4% sequentially to $241.8 million.

Executive Comments

Company officers highlighted continued positive net flows in retail separate accounts and ETFs. The introduction of a new collateralized loan obligation (CLO) was noted as a key success strategy facilitating growth in institutional sales.

Dividends and Share Repurchase Program

The company increased its quarterly dividend to $2.25 per share, marking an 18% increase. It also repurchased 72,850 shares of common stock, investing $14.9 million.

Stock Price Movement

Following the earnings release, the company's stock experienced a notable post-event percentage change of +10.20%.

Overall, Virtus Investment Partners has demonstrated strong quarterly performance characterized by robust segment growth, disciplined financial management, and rewarding shareholders through dividends and buybacks.

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