MarketAxess Holdings Inc. (MKTX) announced impressive growth in its trading volumes for the fourth quarter of 2024 and December. The total credit average daily trading volume (ADV) reached nearly $13.9 billion, marking a year-over-year increase of more than 6%. This growth was driven by notable gains across various segments, including a 4% rise in U.S. high-grade ADV, an 18% boost in emerging markets ADV and 13% growth in Eurobonds ADV. Total ADV rose 38% to $41 billion in the December quarter.One of the st ...

MarketAxess Holdings Inc. (MKTX) benefits from solid trading volumes, acquisitions and collaborations, a well-established Open Trading platform and robust cash-generating abilities.   MKTX’s Zacks Rank & Price PerformanceMarketAxess carries a Zacks Rank #2 (Buy) at present. The stock has gained 20.6% in the past year.Image Source: Zacks Investment ResearchRobust Growth Prospects of MarketAxessThe Zacks Consensus Estimate for MarketAxess’ 2024 earnings is pegged at $7.37 per share, indicating a year-over-yea ...

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Core Viewpoint - MarketAxess (MKTX) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. MarketAxess Earnings Outlook - MarketAxess is projected to earn $7.33 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 7% [8]. - Over the past three months, the Zacks Consensus Estimate for MarketAxess has risen by 4%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of MarketAxess to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Shares of MarketAxess (MKTX) have been struggling lately and have lost 5.2% over the past week. However, a hammer chart pattern was formed in its last trading session, which could mean that the stock found support with bulls being able to counteract the bears. So, it could witness a trend reversal down the road.While the formation of a hammer pattern is a technical indication of nearing a bottom with potential exhaustion of selling pressure, rising optimism among Wall Street analysts about the future earnin ...

I am a former sell-side / buy-side equities analyst that has left the world of day to day trading but remains closely engaged with market and individual stock developments. I focus primarily on exchanges and brokers with a long / short fundamental approach to my analysis. My goal for these posts is to try and shed unique light on investment theses around the stocks I focus on. Any investing I do is purely for my own personal account.Analyst’s Disclosure: I/we have a beneficial long position in the shares of ...

Trading Volume and Market Activity - In Q3 2024, U.S. high-grade and high-yield market average daily trading volume increased by 39.4% and 22.6%, respectively, with new issuance rising to $403.9 billion and $74.3 billion[87]. - Trading volumes in Auto-X, an automated trading protocol, rose to $96.1 billion, a 27.6% increase from Q3 2023, with trade count increasing by 36.6% to approximately 612,000[91]. - Emerging markets estimated market volumes have significantly increased, driven by a favorable macroeconomic outlook, reflecting easing inflation concerns[87]. - Total trading volume for the three months ended September 30, 2024, was $2.6 trillion, an increase of $749.2 million, or 40.6%, compared to $1.8 trillion in the same period of 2023[108]. - U.S. high-grade trading volume increased by 37.8% to $449.7 billion, while estimated market share decreased to 19.5% from 20.0%[109]. - Rates trading volume increased by 48.0% to $1.7 trillion, primarily due to higher estimated market volumes[109]. - Total trading volume for the nine months ended September 30, 2024, reached $6.74 trillion, an increase of $797.8 billion, or 13.4%, from $5.94 trillion in 2023[120]. Financial Performance - Revenues for the three months ended September 30, 2024, were $206.715 million, a 20.0% increase from $172.284 million in the same period of 2023[105]. - Commission revenue accounted for $180.392 million, representing 87.3% of total revenues, with a 19.9% increase from $150.496 million in the prior year[106]. - Information services revenue was $12.960 million, a 9.8% increase from $11.801 million, making up 6.3% of total revenues[106]. - Post-trade services revenue increased by 5.6% to $10.382 million from $9.833 million, representing 5.0% of total revenues[106]. - Technology services revenue surged to $2.981 million, a significant increase from $154 thousand, contributing 1.4% to total revenues[106]. - Operating income for the three months ended September 30, 2024, was $87.055 million, a 30.1% increase from $66.909 million in the same period of 2023[105]. - Net income rose to $71.489 million, reflecting a 30.1% increase from $54.941 million year-over-year[105]. - Net income per diluted share increased to $1.90, up from $1.46, marking a 30.1% rise[105]. - Revenues for the nine months ended September 30, 2024, increased by $59.4 million, or 10.7%, to $614.7 million compared to $555.3 million in the same period of 2023[115]. - Operating income for the nine months ended September 30, 2024, was $260.9 million, reflecting a $22.9 million increase, or 9.6%, from $238.0 million in 2023[115]. - Net income for the nine months ended September 30, 2024, rose to $209.0 million, an increase of $20.6 million, or 10.9%, compared to $188.4 million in 2023[115]. Expenses and Costs - Total expenses for the three months ended September 30, 2024, were $119.660 million, a 13.6% increase from $105.375 million in the prior year[105]. - Employee compensation and benefits rose by $9.6 million, or 19.6%, to $58.4 million, largely due to increased salaries and higher employee headcount from the Pragma acquisition[111]. - Total expenses for the nine months ended September 30, 2024, increased by 11.5% to $353.8 million, including Pragma expenses of $23.8 million[124]. - Employee compensation and benefits rose by $26.9 million, primarily due to higher salaries, taxes, and benefits from increased headcount following the Pragma acquisition[125]. Cash Flow and Liquidity - The company ended the quarter with $749.9 million in available borrowing capacity under the 2023 Credit Agreement, indicating strong liquidity[87]. - Cash and cash equivalents totaled $602.5 million as of September 30, 2024, with significant investments in investment-grade corporate bonds and U.S. Treasury securities[129]. - Net cash provided by operating activities increased by 8.8% to $209.0 million, primarily due to higher net income and lower prepaid expenses[131]. - Net cash used in financing activities increased by 41.2% to $156.5 million, mainly due to higher common stock repurchases of $58.6 million[132]. - The company’s cash and cash equivalents, restricted cash, and cash deposits totaled $600.0 million as of September 30, 2024, with a hypothetical 100 basis point change in interest rates potentially affecting annual interest income by approximately $6.0 million[140]. Regulatory and Competitive Environment - The competitive landscape is intensifying, with increased demand for portfolio trading workflows impacting market share[88]. - Regulatory changes, including the SEC's proposed rules, may require compliance adjustments that could affect operational costs and profitability[90]. Acquisitions and New Products - The recent acquisition of Pragma is expected to accelerate the development of AI-driven execution algorithms across key product areas[86]. - The company introduced X-Pro, a new trading platform, in 2023 to enhance trading efficiency and integrate proprietary data and pre-trade analytics[91]. - The company entered into an agreement to acquire an additional 49.0% interest in RFQ-hub Holdings LLC for approximately $37.9 million, which will increase its stake to 92.0%[134]. - New product revenues from Pragma amounted to $23.1 million for the nine months ended September 30, 2024[116]. Foreign Currency and Derivative Instruments - Approximately 15.7% of the company’s revenues and 24.4% of its expenses for the twelve months ended September 30, 2024, were denominated in currencies other than the U.S. dollar, primarily the British Pound Sterling[141]. - The notional amount of the foreign currency forward contract as of September 30, 2024, was $64.1 million[143]. - The company uses foreign currency forward contracts to hedge foreign exchange gains and losses related to U.S. dollar versus British Pound Sterling exposure[143]. - The derivative instruments held by the company are solely for the purpose of economically hedging foreign currency risk[143]. - The company's limited derivative risk is primarily associated with its U.K. subsidiaries[143].

MarketAxess Holdings Inc. (MKTX) has reported third-quarter 2024 earnings per share of $1.90, which surpassed the Zacks Consensus Estimate by 4.4%. The bottom line grew 30.1% year over year.Total revenues of $206.7 million rose 20% year over year. The top line surpassed the consensus mark by a whisker.The strong quarterly results were driven by improving U.S. high-grade, emerging markets and Eurobonds commission revenues. Higher service revenues added to the upside. Geographic expansion and product diversif ...

For the quarter ended September 2024, MarketAxess (MKTX) reported revenue of $206.72 million, up 20% over the same period last year. EPS came in at $1.90, compared to $1.46 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $205.48 million, representing a surprise of +0.60%. The company delivered an EPS surprise of +4.40%, with the consensus EPS estimate being $1.82.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and h ...

MarketAxess (MKTX) came out with quarterly earnings of $1.90 per share, beating the Zacks Consensus Estimate of $1.82 per share. This compares to earnings of $1.46 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.40%. A quarter ago, it was expected that this operator of bond trading platforms would post earnings of $1.69 per share when it actually produced earnings of $1.72, delivering a surprise of 1.78%.Over the last four q ...