(Bloomberg) — Virtu Financial Inc.s shares fell by a record amount after the automated traders second-quarter earnings missed estimates because of a tougher trading environment.
Profit excluding some items was 27 cents a share, trailing the average analyst projection of 32 cents a share, according to data compiled by Bloomberg.
The stock slid 11 percent to $20.76 at 4 p.m. New York time. In the three months since its initial public offering, Virtu had never fallen that much on a closing basis.
Virtu benefited in the first quarter from the Swiss National Banks January decision to remove a cap on the franc, fueling extreme volatility in currency markets. That event rippled through markets for weeks, Virtu Chief Executive Officer Doug Cifu told analysts during a conference call Wednesday.
In contrast, the second quarter presented a challenging volume environment, Cifu said.
Net income at Virtu amounted to $7.6 million in the three months through June, falling 75 percent from the same period in 2014. Revenue increased to $182 million, up 12 percent from a year earlier, according to the firms earnings statement.
Profit from currency trading during the second quarter tumbled 41 percent to $24.7 million from the first quarter, and was almost unchanged from a year earlier.
Chris Allen, an analyst at Evercore ISI, said in a report that the miss was largely driven by the global currencies segment.
We remain optimistic about the outlook for our business for the remainder of this year, Cifu said in a statement. Market activity in July has been more robust and indicative of higher levels of activity across our business.
