NYSE$VRTS

Virtus Investment Partners Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Virtus reported an increase in operating income and revenues, driven by higher average assets under management, but experienced a slight decline in total assets under management due to market performance and net outflows.

Virtus Investment Partners reported increased revenues and operating income for Q3 2021. Total assets under management decreased slightly to $177.3 billion. The company also completed the acquisition of Westchester Capital Management.

  • Earnings per share diluted was $7.36, and earnings per share diluted, as adjusted, was $9.71.
  • Total sales were $7.6 billion, with net flows of ($0.6 billion).
  • Assets under management totaled $177.3 billion.
  • Operating income increased 8% to $93.3 million.

Headline financials

Total Revenue

$252M

Previous: $155M+62.8%
EPS (adj)

$9.71

Previous: $4.49+116.3%
Total sales

$7.6B

Previous: $7.6B+0.0%
Net flows

-$600M

Previous: $1.2B-150.0%
Operating margin

37.0%

No prior period
Operating margin, as adjusted

50.6%

No prior period
Capital Expenditures

-$4.82M

Previous: -$789K-511.2%
Free Cash Flow

$67.7M

Previous: $28.9M+134.6%
Net Income

$72.5M

Previous: $29.6M+144.6%
Operating Income

$93.3M

Previous: $41M+127.5%
Gross Profit

$252M

Previous: $155M+62.8%
Cash & Equivalents

$437M

Previous: $202M+116.2%
Total Assets

$3.78B

Previous: $3.39B+11.4%
Stock-Based Comp

$5.99M

Previous: $6.3M-4.9%

Revenue & EPS history

Virtus · Revenue · Quarterly

$252M

Q3 2021+62.8%vs Q3 2020
Beat estimate in 14 of 16 quarters(88%)
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

This press release contains forward-looking statements based on current expectations, assumptions, and projections about the company and its markets. These statements are subject to risks and uncertainties that could cause actual results to differ materially.

Tailwinds

  • Statements are identified by terms like expect, estimate, intent, plan, believe, anticipate, may, will, should, could, and continue.
  • Forward-looking statements are based on expectations, assumptions, and projections about the company and its markets.
  • The company provides investment management products and services through affiliated managers and select subadvisers.
  • Virtus Investment Partners offers access to a variety of investment styles across multiple disciplines.
  • The company is singularly committed to the long-term success of individual and institutional investors.

Headwinds

  • Actual results may differ materially from forward-looking statements.
  • The business and forward-looking statements involve known and unknown risks and uncertainties.
  • Risks include reductions in assets under management, economic conditions, and inability to achieve benefits of strategic transactions.
  • The COVID-19 pandemic and associated global economic disruption pose ongoing risks.
  • Other risks include damage to reputation, inability to attract key personnel, and adverse regulatory developments.

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 Q3 2021

Historical avgQ3 2021

-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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