MarketAxess Holdings Earnings: Here’s Why Investors are Buying Shares Now

MarketAxess Holdings Inc. (NASDAQ:MKTX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.88%.

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MarketAxess Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 17.14% to $0.41 in the quarter versus EPS of $0.35 in the year-earlier quarter.

Revenue: Rose 9.58% to $55.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: MarketAxess Holdings Inc. reported adjusted EPS income of $0.41 per share. By that measure, the company beat the mean analyst estimate of $0.37. It beat the average revenue estimate of $54.45 million.

Quoting Management: “We are pleased to report another solid quarter with record revenues and pre-tax income, driven by continued momentum in our core U.S. high-grade business and strong growth in high yield and emerging markets,” said Richard M. McVey, chairman and chief executive of MarketAxess. “Our Open Trading initiatives continue to gain traction and yesterday we announced a strategic alliance with BlackRock that we think will help drive liquidity in the credit markets by facilitating trade flow between users of BlackRock’s Aladdin enterprise investment system and the MarketAxess trading community. In Europe, we completed our acquisition of Xtrakter Limited earlier in the quarter and we are excited about the opportunities presented by the combination of the two companies.”

Key Stats (on next page)…

Revenue increased 10.34% from $50.39 million in the previous quarter. EPS decreased 24.07% from $0.54 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.39 to a profit $0.4. For the current year, the average estimate has moved down from a profit of $1.6 to a profit of $1.58 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]