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MarketAxess (MKTX) Q2 Earnings Miss Estimates But Rise Y/Y

Zacks Equity Research

MarketAxess Holdings Inc.'s MKTX second-quarter 2019 earnings per share of $1.27 missed the Zacks Consensus Estimate by 2.3% but improved 15.9% year over year.

Operational  Update

Revenues totaled $125 million, up 16.8% year over year. The top line, however, met the Zacks Consensus Estimate.

Commission revenues rose 18.7% year over year to $114.1 million. Information services revenues rose 3.3% year over year to $7.2 billion. Revenues from post-trade services were up 9.3% to $3.96 million.

Total trading volume expanded 25% year over year to $527 billion.

Total expenses at MarketAxess escalated 18% from the prior-year quarter to $64.6 million. This rise was primarily due to higher employee compensation and benefit, as the company continues to add personnel to support its growth initiatives.

Operating margin was 48.5%, down 10 basis points (bps) year over year.

MarketAxess Holdings Inc. Price, Consensus and EPS Surprise

MarketAxess Holdings Inc. Price, Consensus and EPS Surprise

MarketAxess Holdings Inc. price-consensus-eps-surprise-chart | MarketAxess Holdings Inc. Quote

Financial  Update

Total assets were $812 million as of Jun 30, 2019, up 16.7% from year-end 2018 level.

Total cash, cash equivalents and investments were $286.2 million, up 16% from the year-ago figure.

As of Jun 30, 2019, total stockholders' equity was $661.9 million, up 8.9% from year-end 2018 levels. .

Zacks Rank & Other Releases

MarketAxess carries a Zacks Rank #2 (Buy).

 You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other stocks worth considering in the same space are CME Group CME, Nasdaq, Inc. NDAQ and Intercontinental Exchange Inc. ICE. Each of these players carries the same Zacks Rank as MarketAxess.

CME Group, Nasdaq, and Intercontinental Exchange, each  have surpassed their earnings estimates in each of the four reported quarters with an average positive surprise of 1.42%, 1.5% and  3.23% , respectively.

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MarketAxess Holdings Inc. (MKTX) : Free Stock Analysis Report
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