Nasdaq-listed Virtu Financial Inc. today released its preliminary estimates for its top line for the first two months of Q2 2020. The company estimates that the adjusted net trading for the period will be between $425 million and $440 million.
What to expect?
According to Virtu, the trading income for the two months ending May 31, 2020, will be between $460 million and $474 million. The adjusted net trading will be between $425 million and $440 million. The Average Daily Adjusted Net Trading Income is expected to be between $10.37 million and $10.73 million per day.
The company witnessed a sharp rise in its revenues in the first quarter of this year. Its total revenue went up by 176.6% on a year-on-year basis to $1,004.1 million. Fresh volatility in the markets and the rising trading volumes across the global markets and asset classes were responsible for the rise. The volatility was triggered due to the coronavirus pandemic.
The net trading income of the company also increased by 211.6% during the first quarter. In Q1 2020 the income was $802.5 million, up from $257.5 million from Q1 2019. It also earned a net income of $288.2 million for the first quarter, up from the $13.6 million net loss it faced during the previous. This included the costs related to its acquisition of ITG. As a result, the company posted a loss per share of $0.07 in 2019 first quarter. This year, it has converted it to earnings per share of $1.80.
New services in the making
Last month, Virtu also launched a new data-as-a-service platform that will host a wide catalog of its services as well as data endpoints that were enabled via the API architecture. The company calls it ‘Open Technology’ which works on an application programming interface and allows subscribers to access market-data calculations. They can also access transaction cost data across asset classes like equity, futures, fixed income, and forex.