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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