NYSE$VRTS

Virtus Investment Partners Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Virtus reported an increase in operating income and total AUM due to positive net flows and market appreciation, while revenues decreased due to lower average assets under management.

Virtus Investment Partners reported Q2 2020 results with diluted EPS of $1.43 and adjusted diluted EPS of $3.24. The company saw an increase in total sales and net flows, with long-term AUM reaching $107.1 billion and total AUM at $108.5 billion.

  • Diluted earnings per share were $1.43, while adjusted diluted earnings per share reached $3.24.
  • Total sales amounted to $9.1 billion, with net flows of $2.5 billion.
  • Long-term assets under management totaled $107.1 billion.
  • Total assets under management reached $108.5 billion.

Headline financials

Total Revenue

$133M

Previous: $140M-5.4%
EPS (adj)

$3.24

Previous: $3.63-10.7%
Total sales

$9.1B

Previous: $5.1B+78.4%
Net flows

$2.5B

No prior period
Capital Expenditures

-$475K

Previous: -$6.11M+92.2%
Free Cash Flow

$10.8M

Previous: $20.8M-48.1%
Net Income

$11.3M

Previous: $26.9M-58.1%
Operating Income

$26.6M

Previous: $30.1M-11.6%
Gross Profit

$133M

Previous: $140M-5.4%
Cash & Equivalents

$168M

Previous: $251M-33.0%
Total Assets

$3.34B

Previous: $3.07B+8.9%
Stock-Based Comp

$6.49M

Previous: $5.76M+12.8%

Revenue & EPS history

Virtus · Revenue · Quarterly

$133M

Q2 2020-5.4%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Virtus · $133M total across 4 segments · Q2 2020

  • Investment management fees
    $111M
  • Administration and shareholder service fees
    $13.3M
  • Distribution and service fees
    $8.89M
  • Other income and fees
    $166K

Forward guidance

The company entered into a strategic partnership agreement with Allianz Global Investors (AllianzGI) whereby Virtus would become the investment adviser, distributor, and/or administrator of AllianzGI’s approximately $24 billion in open-end, closed-end, and retail separate account assets. The agreement is subject to the approval of the AllianzGI U.S. Funds Board and fund shareholders and is expected to close near year-end 2020.

Tailwinds

  • Virtus will become the investment adviser, distributor, and/or administrator of AllianzGI’s assets.
  • The partnership is structured with an alignment of economic interests over time.
  • The agreement involves approximately $24 billion in assets.
  • No payments are required at closing.
  • The deal is expected to close near year-end 2020.

Headwinds

  • The agreement is subject to the approval of the AllianzGI U.S. Funds Board.
  • The agreement is subject to fund shareholders approval.
  • Closing is not guaranteed and is subject to customary conditions.
  • Potential integration challenges.
  • Uncertainty regarding the final terms and conditions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.2%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+1.2%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+20.5%

Q3 2015

Best reaction

-20.5%

Q2 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-6.9%-1.5%-1.9%
Q4 2025-7.1%-7.4%-11.2%
Q3 2025-6.4%-7.0%-10.8%
Q1 2025-2.3%-2.1%+6.5%
Q4 2024-5.5%-7.7%-11.1%
Q3 2024+5.9%+5.9%+13.7%
Q2 2024-7.9%-8.1%-11.8%
Q1 2024-3.7%-4.7%+0.8%
Q4 2023-2.8%-3.0%-1.3%
Q3 2023+3.6%+7.7%+14.1%
Q2 2023-2.4%-3.6%-4.8%
Q1 2023-1.1%-2.8%+9.1%
Q4 2022-5.9%-5.9%-9.7%
Q3 2022+0.3%-0.0%+12.9%
Q2 2022+1.1%+2.5%-1.6%
Q1 2022-2.2%-0.1%+5.4%
Q4 2021+4.1%+7.8%-12.0%
Q3 2021-6.3%-2.8%-8.3%
Q2 2021+4.3%+5.6%+20.6%
Q1 2021+5.9%+5.2%+7.9%
Q4 2020+4.8%+9.0%+7.3%
Q3 2020+2.5%-5.8%+5.8%
Q2 2020+4.9%+5.0%+5.6%
Q1 2020+15.1%+8.1%+14.4%
Q4 2019+0.3%+6.6%-12.7%
Q3 2019+8.8%+10.2%+17.6%
Q2 2019+4.7%+1.6%-2.0%
Q1 2019+3.0%+1.6%-7.7%
Q4 2018+1.6%+5.5%+15.3%
Q3 2018-2.4%-2.2%-5.0%
Q2 2018+0.5%-1.3%-0.8%
Q1 2018+1.1%+0.7%+9.7%
Q4 2017-3.5%-2.4%-5.5%
Q3 2017-3.6%-5.1%-4.1%
Q2 2017+1.5%-0.8%-8.9%
Q1 2017-4.7%-7.0%-8.0%
Q4 2016-11.1%-12.0%-12.3%
Q3 2016+15.3%+7.4%+24.7%
Q2 2016+3.3%+7.3%+6.7%
Q1 2016+15.5%
Q4 2015-3.6%
Q3 2015+20.5%
Q2 2015+6.0%
Q1 2015-14.1%
Q4 2014-2.6%
Q3 2014+5.7%
Q2 2014+0.1%
Q1 2014+4.0%
Q4 2013-4.0%
Q3 2013+16.1%
Q2 2013+0.8%
Q1 2013+0.1%
Q3 2010+1.8%
Q4 2012+2.2%
Q3 2012-3.1%
Q2 2012+2.4%
Q1 2011+1.2%
Q1 2012+1.9%
Q4 2011-4.3%
Q4 2009-4.3%
Q3 2011+0.5%
Q4 2010-20.5%
Q2 2011-20.5%
Q2 2010-20.5%
Q1 2010-2.1%

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