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MarketAxess (MKTX) to Report Q1 Earnings: What's in the Cards?

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MarketAxess Holdings Inc. MKTX is set to report first-quarter 2022 results on Apr 20, before the opening bell.

MKTX reported fourth-quarter 2021 earnings per share of $1.37, which missed the Zacks Consensus Estimate of $1.43. Also, the bottom line declined from $1.91 per share a year ago. MarketAxess’ weak fourth-quarter earnings were due to escalating costs and decreased trading volumes from the total credit category.

Total revenues decreased to $165.1 million for the quarter under review from $171.3 million a year ago, primarily due to a decline in the Commission sales figure.

MarketAxess’ bottom line beat the consensus estimate in two of the preceding four quarters and missed the mark twice, the average earnings surprise being 1.9%. This is depicted in the graph below:

MarketAxess Holdings Inc. Price and EPS Surprise

MarketAxess Holdings Inc. Price and EPS Surprise
MarketAxess Holdings Inc. Price and EPS Surprise

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

Let’s see how things have shaped up prior to the first-quarter earnings announcement.

Q1 Earnings & Revenue Expectations

The Zacks Consensus Estimate for MKTX’s first-quarter earnings of $1.70 per share indicates deterioration from $2.11 reported in the year-ago quarter. The consensus estimate for sales of $187 million suggests a 4.1% dip from the year-ago period’s reported figure of $195 million.

Its first-quarter earnings are expected to suffer lower sales.

Factors to Note


MarketAxess already reported a total trading volume of $2.3 trillion for the first quarter ($715.7 billion, $716.8 billion and $894.6 billion for January, February and March, respectively), up from $1.9 trillion from the year-ago period, thanks to the solid contributions from rates and total other credit volume.

MKTX is well poised for growth owing to its credit business as well. The consensus mark for total commissions indicates a downside of 4.5% from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for average daily volume total credit for the first quarter is pegged at $1.2 billion, indicating a decline of 2.5% from the year-ago period’s reported figure.

The Zacks Consensus Estimate for total distribution fees is pegged at $31.32 million, indicating an increase from $27.44 in the year-ago period. Yet, the consensus mark for total transaction fees is pegged at $138 million, signaling a decrease from the year-ago level of $148.3 million.

MKTX is expected to have faced steep expenses in the to-be-reported quarter due to growth-related investments in the trading system and personnel.

High expenses are likely to have put margins under pressure, reducing the bottom line.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for MarketAxess this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here as you will see below.

Earnings ESP: MarketAxess has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate is currently pegged at earnings of $1.73 per share, in line with the Zacks Consensus Estimate.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: MarketAxess currently carries a Zacks Rank #3.

Stocks to Consider

While an earnings beat looks uncertain for MarketAxess, here are some companies from the Finance space that you may want to consider, as our model shows that these have the right combination of elements to beat on earnings this season.

Aflac Incorporated AFL has an Earnings ESP of +1.76% and a Zacks Rank of 3.

Aflac is scheduled to report first-quarter results on Apr 27.

Cigna Corporation CI has an Earnings ESP of +6.26% and is Zacks #3 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cigna is scheduled to release first-quarter results on May 6.

The Allstate Corporation ALL has an Earnings ESP of +4.29% and a Zacks Rank of 3.

Allstate is scheduled to release quarterly earnings on May 4.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.



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