A Glimpse of Virtus Inv's Earnings Potential

Virtus Inv VRTS is gearing up to announce its quarterly earnings on Friday, 2024-10-25. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Virtus Inv will report an earnings per share (EPS) of $6.78.

Virtus Inv bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings History Snapshot

Last quarter the company missed EPS by $0.08, which was followed by a 0.0% drop in the share price the next day.

Here's a look at Virtus Inv's past performance and the resulting price change:

Market Performance of Virtus Inv's Stock

Shares of Virtus Inv were trading at $209.24 as of October 23. Over the last 52-week period, shares are up 21.19%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on Virtus Inv

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Virtus Inv.

The consensus rating for Virtus Inv is Underperform, derived from 3 analyst ratings. An average one-year price target of $210.33 implies a potential 0.52% upside.

Comparing Ratings with Competitors

This comparison focuses on the analyst ratings and average 1-year price targets of WisdomTree, Patria Investments and P10, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for WisdomTree, with an average 1-year price target of $13.5, suggesting a potential 93.55% downside.
• The consensus outlook from analysts is an Buy trajectory for Patria Investments, with an average 1-year price target of $14.0, indicating a potential 93.31% downside.
• Analysts currently favor an Neutral trajectory for P10, with an average 1-year price target of $11.6, suggesting a potential 94.46% downside.

Comprehensive Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for WisdomTree, Patria Investments and P10, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Virtus Inv ranks at the bottom for Revenue Growth and Gross Profit, while it is in the middle for Return on Equity.

Delving into Virtus Inv's Background

Virtus Investment Partners Inc provides investment management and related services to individuals and institutions. Its retail products include open-end mutual funds, closed-end funds, exchange-traded funds, and variable insurance funds. Geographically, the activities are carried out through the region of the U.S. and the group generates revenue through investment management fees, distribution and service fees and administration and shareholder service fees.

Virtus Inv's Financial Performance

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Virtus Inv displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 5.19%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 7.89%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Virtus Inv's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.02%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Virtus Inv's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.49%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Virtus Inv's debt-to-equity ratio stands notably higher than the industry average, reaching 2.58. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Virtus Inv visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.