MarketAxess Holdings Earnings: Here’s Why the Stock is Up 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 2.36%.

MarketAxess Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 50% to $0.51 in the quarter versus EPS of $0.34 in the year-earlier quarter.

Revenue: Rose 34.34% to $65.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: MarketAxess Holdings Inc. reported adjusted EPS income of $0.51 per share. By that measure, the company beat the mean analyst estimate of $0.45. It beat the average revenue estimate of $64.4 million.

Quoting Management: “We are gratified with the operating performance achieved this quarter in a period of rising interest rates and a shift in investor sentiment. The record volumes in our three core products – high grade, high yield and emerging markets – were driven by growth in market share and led to record revenues and pre-tax income,” said Richard M. McVey, Chairman and Chief Executive Officer of MarketAxess. “We are also pleased with the promising momentum in our Open Trading initiatives and the positive response to our early integration efforts in Europe with Xtrakter.”

Key Stats (on next page)…

Revenue increased 18.07% from $55.56 million in the previous quarter. EPS increased 24.39% from $0.41 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 $0.4 to a profit $0.42. For the current year, the average estimate has moved up from a profit of $1.61 to a profit of $1.69 over the last ninety days.

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