VRTS Earnings Prediction
The chart below shows how VRTS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VRTS sees a -1.59% change in stock price 10 days leading up to the earnings, and a -1.42% change 10 days following the report. On the earnings day itself, the stock moves by -0.90%. This data can give you a slight idea of what to expect for the next quarter's release.
VRTS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
233.06M
6.38%
2.92%
Gross Margin
--
--
--
Operating Margin
22.30%
8.83%
-0.36%
Net Margin
16.93%
-3.64%
-21.91%
EPS
4.66
10.69%
-18.39%
No Data Available
VRTS Earnings Analysis
Virtus Investment Partners Inc Corporation (VRTS.O) Earnings Conference Call
Positive
ETFs Achieve Record Net Flows: Positive net flows in ETFs, global funds, and retail separate accounts, with ETFs generating $400,000,000 in positive net flows, marking the highest quarterly level and an organic growth rate of 67%.
Quarterly Sales Performance: Total sales for the quarter were $6,400,000,000, with institutional sales increasing to $1,600,000,000, driven by higher sales of global equity and alternative strategies, reflecting a strong demand in these areas.
Operating Margin Improvement: Operating margin reached 35.1%, the highest level since Q2 2022, up from 34.4% in the previous quarter, indicating improved operational efficiency and profitability.
Earnings Per Share Growth: Earnings per share as adjusted increased 8% to $7.50, the highest level since Q1 2022, with full-year earnings per share growing 20%, showcasing strong financial performance.
Cash Position and Share Repurchase: The company ended the year with a net cash position of $30,000,000 and repurchased over 250,000 shares for $57,000,000, while also raising the quarterly dividend by 18%, representing the 7th consecutive annual dividend increase.
Negative
Asset Management Decline: Total assets under management decreased 5% sequentially to $175 billion at December 31, down from $183.7 billion, primarily due to net outflows and negative market performance.
Significant Net Outflows: Total net outflows of $4.8 billion were reported, a significant increase from $1.7 billion in the prior quarter, largely driven by a $3.3 billion partial institutional redemption.
Institutional Client Retention Concerns: Institutional net outflows amounted to $3.8 billion, with $3.3 billion attributed to a lower fee partial redemption, indicating a concerning trend in institutional client retention.
Retail Account Sales Decline: Retail separate account sales declined sequentially from $2.3 billion to $1.8 billion, reflecting lower intermediary sold sales, particularly in SMID cap equity offerings.
Net Income Per Share Decline: GAAP net income per share decreased to $4.66 from $5.71 in the third quarter, impacted by $0.72 of expenses related to the increase in fair value of minority interests and other losses.
VRTS FAQs
How does VRTS typically perform around its earnings report dates?
Is Virtus Investment Partners Inc (VRTS) Q4 2024 Earnings Call Summary positive or negative?
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VRTS Earning Call Sentiment
Earnings call transcript: Virtus Q4 2024 EPS misses, stock falls 5.54%
VRTS.O
1.14%Positive
The earnings call presents a mixed picture. Positive factors include a strong operating margin, increased EPS, and shareholder returns via dividend hikes and share repurchases. However, negative aspects such as net outflows in AUM, decreased sales, and unclear guidance on M&A and redemptions balance the sentiment. The Q&A section reveals management's cautious outlook and lack of clarity on future strategies, which adds uncertainty. Given the small-cap status, the market may react more strongly, but overall, the sentiment is neutral due to the mixed signals and lack of clear growth catalysts.
