Shares of Virtus Investment Partners (VRTS) plummeted 6.59% during Friday's intraday trading session following the release of the company's third-quarter earnings report. The investment management firm's results fell short of analyst expectations, sparking a sell-off among investors.
Virtus reported adjusted earnings per share (EPS) of $6.69 for the quarter ended September 30, missing the consensus estimate of $6.77 to $6.82. This represents a 3.32% decrease compared to the $6.92 per share earned in the same period last year. While the company's revenue of $216.4 million surpassed analyst projections of $198.82 million, it still marked a 4.69% decline from the $227.029 million reported in the previous year.
The disappointing earnings results come amid challenging market conditions for investment managers. Virtus Investment Partners' shares have already fallen by 19.6% year-to-date, reflecting broader concerns about the financial sector. The company's underperformance relative to expectations may lead to a reassessment of its near-term growth prospects, with Wall Street maintaining a cautious stance as reflected in the current average analyst rating of "hold" for the stock.
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