VRTS

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Virtus Investment Partners (VRTS) is back in focus after reporting second quarter 2026 results, with revenue of US$201.36 million and net income of US$45.31 million from continuing operations. See our latest analysis for Virtus Investment Partners. Virtus Investment Partners shares trade at US$159.35 after a 90 day share price return of 17.17% and a 1 month share price return of 9.78%. However, the 1 year total shareholder return is down 10.69% and the 5 year total shareholder return is down 37.47%. This suggests that recent momentum contrasts with a weaker longer term record as investors weigh earnings, buybacks and fund flow trends. If Virtus Investment Partners has you thinking about where else capital might work harder, this could be a good moment to broaden your search with the 18 top founder-led companies Bulls point to Virtus Investment Partners' recent earnings resilience and buybacks, while bears focus on softer revenue, net outflows and long term returns. As you weigh the recent share price rebound, which side does the current valuation support? On Simply Wall St's numbers, Virtus Investment Partners trades on a P/E of 8.9x, which sits against a last close share price of $159.35 and mixed recent returns. The P/E multiple compares the share price to the company’s earnings per share. For a business like Virtus Investment Partners in the capital markets sector, this is often used as a quick gauge of how much investors are paying for each dollar of current earnings. Here the headline is valuation relative to peers. Virtus Investment Partners is described as good value on a P/E of 8.9x compared both to a peer average of 14.9x and to the broader US Capital Markets industry average P/E of 37.2x. That gap suggests the market is assigning a lower price tag to its earnings than many competitors, even though Simply Wall St also flags that VRTS is trading at a 33.4% discount to its own estimate of future cash flow value of $239.20 per share. For investors, that combination of a lower P/E versus peers and a discount to an internal cash flow estimate frames Virtus Investment Partners as a stock where expectations embedded in the current price differ from those applied across much of the industry. See what the numbers say about this price — find out in our valuation breakdown. Result: Price-to-earnings of 8.9x (UNDERVALUED) However, recent revenue contraction and the current share price sitting above the analyst price target of US$146 could challenge the Virtus Investment Partners undervaluation story. Find out about the key risks to this Virtus Investment Partners narrative. The P/E comparison presents Virtus Investment Partners as inexpensive, and the SWS DCF model provides additional context. On those cash flow assumptions, VRTS trades at about a 33.4% discount to an estimated fair value of $239.20 per share. That is a wide gap for you to justify or question. For readers who want to see how this cash flow based view is built step by step, it is worth going through the Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Virtus Investment Partners for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 55 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Given the mix of optimism and concern around Virtus Investment Partners, this is a good time to review the full picture yourself and move promptly while the latest results are still fresh, starting with the 1 key reward and 3 important warning signs If Virtus Investment Partners has sharpened your focus on valuations and earnings quality, do not stop here. Broaden your watchlist now so you do not miss other opportunities. Target potential mispricing by scanning a curated set of 55 high quality undervalued stocks that combine quality fundamentals with appealing valuations. Strengthen your income stream by reviewing 9 dividend fortresses that aim to pair higher yields with resilient business profiles. Protect your portfolio from unwanted surprises by concentrating on 81 resilient stocks with low risk scores that score well on financial health and volatility checks. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include VRTS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Earnings Per Share - Diluted of $6.68; Earnings Per Share - Diluted, as Adjusted, of $5.54 Total Sales of $6.1B; Net Flows of ($5.6B); Assets Under Management of $152.2B HARTFORD, Conn., July 30, 2026--(BUSINESS WIRE)--Virtus Investment Partners, Inc. (NYSE: VRTS) today reported financial results for the three months ended June 30, 2026. Earnings Summary The company presents U.S. GAAP and non-GAAP earnings information in this release. Management believes that the non-GAAP financial measures presented reflect the company’s operating results from providing investment management and related services to individuals and institutions and uses these measures to evaluate financial performance. Non-GAAP financial measures have material limitations and should not be viewed in isolation or as a substitute for U.S. GAAP measures. Non-GAAP information and reconciliations to the most comparable U.S. GAAP measures can be found beginning on page 10 of this earnings release. Total assets under management of $152.2 billion at June 30, 2026 increased from $149.0 billion in the prior quarter due to market performance and positive net flows in exchange-traded funds (ETFs) and wealth management, partially offset by net outflows in other products. In addition, the company provided services to $1.7 billion of other fee-earning assets that are not included in assets under management. Total sales increased 5% to $6.1 billion from $5.8 billion in the prior quarter due to higher institutional, wealth management, and ETF sales. Institutional sales of $2.2 billion increased from $1.2 billion primarily reflecting a large inflow into a global listed real estate strategy. Retail separate account sales of $1.2 billion declined from $1.4 billion as lower intermediary-sold sales were partially offset by higher wealth management. Open-end fund sales, including $0.6 billion of ETFs, decreased 14% to $2.6 billion due to lower sales of U.S. retail and global funds. Net flows of ($5.6) billion improved meaningfully from ($8.4) billion in the prior quarter, with net outflows due to quality-oriented equity strategies partially offset by positive net flows in alternatives, fixed income, and multi-asset. Institutional net flows of ($0.7) billion improved from ($3.2) billion due to higher sales and lower redemptions. Retail separate account net flows of ($3.1) billion compared with ($3.9) billion and included positive wealth management net flows. Open-end fund net flows of ($1.8) billion compared with ($1.3) billion in the prior quarter with net outflows largely due to quality-oriented equity strategies. ETF net flows were $0.3 billion. GAAP Results Operating income of $27.3 million increased from $15.4 million in the prior quarter reflecting a 1% increase in revenues primarily due to higher investment management fees and a decrease in operating expenses. The lower operating expenses were primarily due to the impact of prior quarter employment expense seasonality in addition to lower other operating expenses. Net income attributable to Virtus Investment Partners, Inc. of $6.68 per diluted share included $2.65 of realized and unrealized gains on investments, $0.50 of fair value adjustments to minority interests, and $0.49 of fair value adjustments to contingent consideration, partially offset by ($0.16) of tax adjustments, ($0.09) of restructuring, and ($0.03) of acquisition and integration costs. Net income per diluted share of $1.05 in the prior quarter included ($1.69) of realized and unrealized losses on investments, ($0.62) of acquisition and integration costs, ($0.32) of restructuring and severance, ($0.22) of tax adjustments, and ($0.05) of fair value adjustments to contingent consideration, partially offset by $0.21 of fair value adjustments to minority interests. The effective tax rate of 16% decreased from 54% in the prior quarter reflecting the meaningful sequential change from unrealized losses in the prior quarter to unrealized gains. Non-GAAP Results Revenues, as adjusted, of $183.6 million increased 1% from $182.3 million in the prior quarter primarily due to a higher average fee rate partially offset by lower average assets under management. Employment expenses, as adjusted, of $102.1 million decreased from $106.2 million due to prior quarter seasonal items partially offset by the full quarter impact of Keystone National Group (Keystone) and $3.8 million for a discrete non-cash expense item. The discrete item related to multi-year stock-based awards primarily due to required acceleration of awards to retirement-eligible employees. Other operating expenses, as adjusted, of $31.9 million increased from $30.6 million in the prior quarter due to the $0.7 million annual equity grant to the Board of Directors and a full quarter of Keystone. Operating income, as adjusted, of $47.9 million and the related margin of 26.1% increased from $43.8 million and 24.0%, respectively, due to prior quarter seasonal expenses and higher revenues, partially offset by the discrete expense item. Net income attributable to Virtus Investment Partners, Inc., as adjusted, per diluted share of $5.54, which included $0.43 from the discrete expense item, increased from $5.38 in the prior quarter primarily reflecting the prior quarter seasonal items and higher revenues. The effective tax rate, as adjusted, of 13% was relatively unchanged from the prior quarter. Cash and equivalents at June 30, 2026 of $176.2 million increased from $136.6 million at March 31, 2026 primarily due to cash earnings in excess of return of capital to shareholders and debt repayment. Working capital at June 30, 2026 was $71.6 million. During the quarter, the company repurchased 70,097 shares for $10.0 million and paid its quarterly dividend which totaled $16.3 million. Gross debt at June 30, 2026 was $427 million, down from $448 million primarily due to a $20 million repayment of the amount drawn on the company's revolving credit facility. Net debt declined to $251 million, or 0.9x EBITDA. Conference Call and Investor Presentation Management will host an investor conference call and webcast on Thursday, July 30, 2026, at 10 a.m. Eastern to discuss these financial results and related matters. The presentation that will accompany the conference call is available in the Investor Relations section of virtus.com. A replay of the call will be available in the Investor Relations section for at least one year. We routinely post important information for investors on the Investor Relations section of our website and may use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. We may also use social media channels to communicate with our investors and the public about our company, our products and other matters, and those communications could be deemed to be material information. The information contained on, or that may be accessed through, our website or social media channels are not incorporated by reference into, and are not a part of, this document. About Virtus Investment Partners, Inc. Virtus Investment Partners (NYSE: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. We provide investment products and services from our investment managers, each with a distinct investment style and autonomous investment process, as well as select subadvisers. Investment solutions are available across multiple disciplines and product types to meet a wide array of investor needs. Additional information about our firm, investment partners, and strategies is available at virtus.com. Non-GAAP Information and Reconciliations(in thousands except per share data) The non-GAAP financial measures included in this release differ from financial measures determined in accordance with U.S. GAAP as a result of the reclassification of certain income statement items, as well as the exclusion of certain expenses and other items that are not reflective of the earnings generated from providing investment management and related services. Management uses these measures to evaluate the company’s financial performance and operational decision-making. Management believes that these non-GAAP financial measures, when presented together with directly comparable U.S. GAAP measures, are useful to investors and other interested parties to provide additional insight, promote transparency and allow for a more comprehensive understanding of the information used by management. Please see the Notes to Reconciliations on page 13 for additional information on how these measures reflect the company’s operating results. Non-GAAP financial measures have material limitations and should not be viewed in isolation or as a substitute for U.S. GAAP measures. Also, the non-GAAP financial measures referenced in this release may not be comparable to the similarly titled measures used by other companies. The following are reconciliations and related notes of the most directly comparable U.S. GAAP measure to each non-GAAP measure: Notes to Reconciliations: 1. Consolidated investment products - Revenues and expenses generated by operating activities of mutual funds and collateralized loan obligations (CLOs) that are consolidated in the financial statements. Management believes that excluding these operating activities to reflect net revenues and expenses of the company prior to the consolidation of these products is consistent with the approach of reflecting its operating results from managing third-party client assets. Revenue Related 2. Investment management/Distribution and service fees - Each of these revenue line items is reduced to exclude fees passed through to third-party retail client intermediaries who maintain the client relationship and are responsible for distributing company sponsored investment products and servicing the client. The amount of fees fluctuates each period, based on a predetermined percentage of the value of assets under management, and varies based on the type of investment product. The specific adjustments are as follows: Investment management fees - Based on specific agreements, the portion of investment management fees passed through to third-party intermediaries for services to investors in sponsored investment products. Distribution and service fees - Based on distinct arrangements, fees collected by the company then passed through to third-party client intermediaries for services to investors in sponsored investment products. The adjustment represents all of the company's distribution and service fees that are recorded as a separate line item on the condensed consolidated statements of operations. Management believes that making these adjustments aids in comparing the company's operating results with other asset management firms that do not utilize third-party client intermediaries. Expense Related 3. Distributions to minority interests - Earnings allocated and distributed to limited partners of a majority owned manager are recorded as employment expenses and other expense in the financial statements. Management believes reclassifying these earnings distributions to noncontrolling interests to reflect these payments as non-operating earnings distributions aids in comparing the company's operating results with other asset managers that do not have majority-owned managers. 4. Distribution and other asset-based expenses - Primarily payments to third-party client intermediaries for providing services to investors in sponsored investment products. Management believes that making this adjustment aids in comparing the company’s operating results with other asset management firms that do not utilize third-party client intermediaries. 5. Goodwill and intangible assets - Non-cash amortization expense or impairment expense, if any, attributable to acquisition-related goodwill and intangible assets, including any portion that is allocated to noncontrolling interests, and the economic tax benefit realized on amortization of such assets. Management believes that making this adjustment aids in comparing the company’s operating results with other asset management firms that have not engaged in acquisitions as well as comparing prior periods. Components of Goodwill and Intangible Assets for the respective periods are shown below: 6. Restructuring expense - Certain non-recurring expenses associated with restructuring the business, including lease abandonment-related expenses and severance costs associated with staff reductions that are not reflective of ongoing earnings generation of the business. Management believes that making this adjustment aids in comparing the Company's operating results with prior periods. 7. Deferred compensation and related investments - Compensation expense, gains and losses (realized and unrealized), and interest and dividend income related to deferred compensation and related balance sheet investments. Market performance of deferred compensation plans and related investments can vary significantly from period to period. Management believes that making this adjustment aids in comparing the Company's operating results with prior periods. 8. Acquisition and integration expenses - Expenses that are directly related to acquisition and integration activities. Acquisition expenses include certain transaction related employment expenses, closing costs, professional fees, and financing fees as well as any change in the fair value of contingent consideration. Integration expenses include costs incurred that are attributable to combining businesses, including compensation, restructuring expense, professional fees, consulting fees, and other expenses. Management believes that making these adjustments aids in comparing the Company’s operating results with other asset management firms that have not engaged in acquisitions. Components of Acquisition and Integration Expenses for the respective periods are shown below: 9. Other - Certain expenses that are not reflective of the ongoing earnings generation of the business. Employment expenses and noncontrolling interests are adjusted to exclude fair value measurements of investment manager minority interests. Other operating expenses are adjusted for non-capitalized debt issuance costs, amortization of lease termination fees and transition related expense (benefit). Interest expense is adjusted to remove gains on early extinguishment of debt and the write-off of previously capitalized costs in connection with a debt modification. Income tax expense (benefit) items are adjusted for uncertain tax positions, changes in tax law, valuation allowances, and other unusual or infrequent items not related to current operating results to reflect a normalized effective rate. Management believes that making these adjustments aids in comparing the Company’s operating results with prior periods. Components of Other for the respective periods are shown below: Seed Capital and CLO Related 10. Seed capital and CLO investments (gains) losses - Gains and losses (realized and unrealized) of seed capital and CLO investments. Gains and losses (realized and unrealized) generated by seed capital and CLO investments can vary significantly from period to period and do not reflect the Company’s operating results from providing investment management and related services. Management believes that making this adjustment aids in comparing the Company’s operating results with prior periods and with other asset management firms that do not have meaningful seed capital and CLO investments. Definitions: Revenues, as adjusted, comprise the fee revenues paid by clients for investment management and related services. Revenues, as adjusted, for purposes of calculating net income attributable to Virtus Investment Partners, Inc., as adjusted, differ from U.S. GAAP, namely in excluding the impact of operating activities of consolidated investment products and reduced to exclude fees passed through to third-party client intermediaries who own the retail client relationship and are responsible for distributing the product and servicing the client. Operating expenses, as adjusted, is calculated to reflect expenses from ongoing continuing operations. Operating expenses, as adjusted, for purposes of calculating net income attributable to Virtus Investment Partners, Inc., as adjusted, differ from U.S. GAAP expenses in that they exclude amortization or impairment, if any, of intangible assets, restructuring and severance, the effect of consolidated investment products, acquisition and integration-related expenses and certain other expenses that do not reflect the ongoing earnings generation of the business. Operating margin, as adjusted, is a metric used to evaluate efficiency represented by operating income, as adjusted, divided by revenues, as adjusted. Earnings (loss) per share, as adjusted, represent net income (loss) attributable to Virtus Investment Partners, Inc., as adjusted, divided by weighted average shares outstanding, as adjusted, on either a basic or diluted basis. Forward-Looking Information This press release contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts, including statements about our beliefs or expectations, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by such forward-looking terminology as "expect," "estimate," "intent," "plan," "intend," "believe," "anticipate," "may," "will," "should," "could," "continue," "project," "opportunity," "predict," "would," "potential," "future," "forecast," "guarantee," "assume," "likely," "target" or similar statements or variations of such terms. Our forward-looking statements are based on a series of expectations, assumptions and projections about the company and the markets in which we operate, are not guarantees of future results or performance, and involve substantial risks and uncertainty including assumptions and projections concerning our assets under management, net asset inflows and outflows, operating cash flows, business plans, and ability to borrow, for all future periods. All of our forward-looking statements are as of the date of this release only. The company can give no assurance that such expectations or forward-looking statements will prove to be correct. Actual results may differ materially. Our business and our forward-looking statements involve substantial known and unknown risks and uncertainties, including those discussed under "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our 2025 Annual Report on Form 10-K, as supplemented by our periodic filings with the Securities and Exchange Commission (the "SEC"), as well as the following risks and uncertainties resulting from: (i) reduction in our assets under management; (ii) financial or business risks from strategic transactions; (iii) withdrawal, renegotiation or termination of investment management agreements; (iv) damage to our reputation; (v) inability to satisfy financial debt covenants and required payments; (vi) lack of sufficient capital on satisfactory terms; (vii) inability to attract and retain key personnel; (viii) challenges from competition; (ix) adverse developments related to unaffiliated subadvisers; (x) negative changes in key distribution relationships; (xi) interruptions, breaches, or failures of technology systems; (xii) loss on our investments; (xiii) adverse regulatory and legal developments; (xiv) failure to comply with investment guidelines or other contractual requirements; (xv) adverse civil litigation, government investigations, or proceedings; (xvi) unfavorable changes in tax laws or unanticipated tax obligations; (xvii) impediments from certain corporate governance provisions; (xviii) losses or costs not covered by insurance; (xix) impairment of goodwill or other intangible assets; and other risks and uncertainties. Any occurrence of, or any material adverse change in, one or more risk factors or risks and uncertainties referred to above, in our 2025 Annual Report on Form 10-K, and our other periodic reports filed with the SEC could materially and adversely affect our operations, financial results, cash flows, prospects and liquidity. Certain other factors that may impact our continuing operations, prospects, financial results and liquidity, or that may cause actual results to differ from such forward-looking statements, are discussed or included in the company’s periodic reports filed with the SEC and are available on our website at www.virtus.com under "Investor Relations." You are urged to carefully consider all such factors. The company does not undertake or plan to update or revise any such forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections, or other circumstances occurring after the date of this release, even if such results, changes or circumstances make it clear that any forward-looking information will not be realized. If there are any future public statements or disclosures by us that modify or affect any of the forward-looking statements contained in or accompanying this release, such statements or disclosures will be deemed to modify or supersede such statements in this release. View source version on businesswire.com: https://www.businesswire.com/news/home/20260730852140/en/ Contacts Investor Relations Contact Sean Rourke(860) [email protected] Media Relations Contact Laura Parsons(860) [email protected]

Virtus Investment Partners (VRTS) came out with quarterly earnings of $5.54 per share, missing the Zacks Consensus Estimate of $6.09 per share. This compares to earnings of $6.25 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -9.03%. A quarter ago, it was expected that this asset management company would post earnings of $5.56 per share when it actually produced earnings of $5.38, delivering a surprise of -3.24%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Virtus, which belongs to the Zacks Financial - Investment Management industry, posted revenues of $183.58 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.33%. This compares to year-ago revenues of $190.99 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Virtus shares have added about 2.8% since the beginning of the year versus the S&P 500's gain of 6.9%. While Virtus has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Virtus was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $6.47 on $189.81 million in revenues for the coming quarter and $24.62 on $735.56 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Management is currently in the top 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Capital Southwest (CSWC), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 3. This business development company is expected to post quarterly earnings of $0.55 per share in its upcoming report, which represents a year-over-year change of -6.8%. The consensus EPS estimate for the quarter has been revised 1.2% higher over the last 30 days to the current level. Capital Southwest's revenues are expected to be $60.4 million, up 8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Virtus Investment Partners, Inc. (VRTS) : Free Stock Analysis Report Capital Southwest Corporation (CSWC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Meaningful improvement in total net flows, with over $1 billion of positive net flows excluding quality equity strategies. Strongest quarter of institutional sales and net flows in nearly three years. Positive net flows in alternatives, fixed income, and multi-asset strategies. ETF business continues to grow, generating $2 billion of net flows in the past year and reaching $5.8 billion in AUM. Operating margin improved sequentially to 26.1% (28.2% excluding a discrete item), driven by higher revenues and lower seasonal expenses. Continued net outflows of $5.6 billion, driven by persistent headwinds in quality-oriented equity strategies. Quality equity strategies underperformed due to a market environment favoring momentum over quality factors. Discrete non-cash expense of $3.8 million related to accelerated stock-based awards negatively impacted earnings. Open-end fund net outflows worsened to $1.8 billion from $1.3 billion in the prior quarter. Retail separate account net outflows remained elevated at $3.1 billion, driven by intermediary-sold quality equities. Here are the key highlights from the Virtus Investment Partners Inc (NYSE:VRTS) Q2 2026 earnings call, presented as summarized Q&A pairs. Warning! GuruFocus has detected 11 Warning Signs with VRTS. Is VRTS fairly valued? Test your thesis with our free DCF calculator. Q: What is driving the strong performance and positive flows in fixed income and alternatives, and what is the potential for an upturn in quality equity strategies?A: (George Elward, President and CEO) Our fixed income capabilities (multi-sector, emerging market debt, leveraged loans, investment grade) have all performed well, leading to asset increases. In alternatives, we saw a large inflow into a global listed real estate strategy. While quality equity strategies are currently out of favor, we have seen a very recent, short-term period of significant outperformance in several of these strategies since late June. This demonstrates the potential for a strong rebound when the market cycle turns in their favor. Q: Are the ongoing outflows in quality-oriented equity strategies a cyclical style issue or a more structural problem?A: (George Elward, President and CEO) We view this as a cyclical matter. These strategies have historically been our biggest asset gatherers when in favor. The current outflows are driven by a market that has rewarded momentum over the quality factors these strategies focus on. We believe the strategies are sticking to their knitting, and we are hopeful for a cycle change, as evidenced by the recent short-term outperformance. Q: Can you provide an update on the Keystone acquisition, specifically regarding its exposure to First Brands and the valuation of certain loans?A: (George Elward, President and CEO) Keystone does have exposure to First Brand, but the way it is structured has not had the implications you might be thinking of. There is no update in terms of any impact, and the expectation is that there should not be any further impacts. They use standard methodologies for mark-to-market valuation. Q: What is the outlook for the lumpy compensation expense, and how much of the 54% guidance for Q3 is driven by future discrete items?A: (Mike Angerthal, CFO) The discrete item was a one-time, non-cash expense related to the acceleration of multi-year performance-based stock awards due to an employee's retirement eligibility. The 54% guidance for Q3 is a reasonable level for the current state of the business and does not anticipate future discrete items of that nature. Revenue levels will also impact the margin. Q: Can you provide more color on the anticipated CLO issuance later this year, including size, timing, and capital commitment?A: (George Elward, President and CEO) Historically, our CLOs have been sized in the $300 to $400 million range, with our capital investment typically in the mid-$20s to low-$30 million range. It is too early to give specifics, but that is the general range we have previously targeted. Q: What is driving the improvement in institutional flows, and what is the current state of the sales pipeline?A: (George Elward, President and CEO) Institutional net outflows improved meaningfully to $0.7 billion from $3.2 billion last quarter, driven by both higher sales and lower redemptions. This was our best quarter for institutional flows in nearly three years. The sales pipeline is stronger than it has been in a year and is diversified across five managers and six strategies. Q: How is the ETF business performing, and what is the strategy for growth in this area?A: (George Elward, President and CEO) ETFs continue to generate positive net flows, with AUM growing to $5.8 billion, up 58% year-over-year. The business has grown from just $1 billion five years ago and generated $2 billion in net flows over the past year. We are expanding our platform with new actively managed ETFs from Duff & Phelps and Sylvan to meet growing client demand. Q: What is the outlook for the effective tax rate and interest expense in the coming quarters?A: (Mike Angerthal, CFO) We expect an effective tax rate in the range of 13% to 14% going forward. With the repayment of a portion of the credit facility during the quarter, we anticipate a modest decline in interest expense in the third quarter. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Wall Street expects a year-over-year increase in earnings on higher revenues when T. Rowe Price (TROW) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 31. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This financial services firm is expected to post quarterly earnings of $2.52 per share in its upcoming report, which represents a year-over-year change of +12.5%. Revenues are expected to be $1.92 billion, up 11.6% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 5.17% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For T. Rowe, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that T. Rowe will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that T. Rowe would post earnings of $2.37 per share when it actually produced earnings of $2.52, delivering a surprise of +6.33%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. T. Rowe doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Financial - Investment Management industry, Virtus Investment Partners (VRTS), is soon expected to post earnings of $6.15 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -1.6%. This quarter's revenue is expected to be $187.15 million, down 2% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Virtus has been revised 2.4% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate. When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that Virtus will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report T. Rowe Price Group, Inc. (TROW) : Free Stock Analysis Report Virtus Investment Partners, Inc. (VRTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Virtus Investment Partners (VRTS) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 30. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This asset management company is expected to post quarterly earnings of $6.14 per share in its upcoming report, which represents a year-over-year change of -1.8%. Revenues are expected to be $186.74 million, down 2.2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 2.22% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Virtus, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that Virtus will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Virtus would post earnings of $5.56 per share when it actually produced earnings of $5.38, delivering a surprise of -3.24%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Virtus doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Virtus Investment Partners, Inc. (VRTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research