We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will High Trading Volumes Aid MarketAxess' (MKTX) Q2 Earnings?
Read MoreHide Full Article
MarketAxess Holdings Inc.’s (MKTX - Free Report) second-quarter 2020 earnings report is slated for Jul 22. The company is likely to have gained from higher total trading volumes in different categories, such as core products like U.S. high-grade, high-yield, the emerging markets and Eurobonds.
The Zacks Consensus Estimate for the company’s second-quarter earnings is pegged at $7.46 per share, indicating a 38.15% surge from the prior-year reported figure.
The acceleration of trading activity is likely to have resulted in strong financial results as well. The Zacks Consensus Estimate for the company’s second-quarter revenues is pegged at $674.23 million, indicating a 31.85% surge from the prior-year reported figure.
Due to low interest rates, companies must have issued more debt, inducing an increase in high-grade debt in the quarter. The industry players are also likely to have tapped their bank credit lines to improve their liquidity position. Evidently, debt issuance is expected to have grown in both private and public sectors, leading to even greater secondary trading opportunities. The Zacks Consensus Estimate for total U.S High-Grade trading volume is pegged at $344 billion, indicating a 29.64% rise from the year-ago reported figure.
The company is likely to have seen expanded trading volumes in municipal bonds and U.S. treasuries, driven by contribution from LiquidityEdge acquisition.
Trading commission, a key revenue driver of the company, is likely to have risen on the back of increased credit trading volume and inclusion of U.S. treasury trading commission. The Zacks Consensus Estimate for commission stands at $155 billion, suggesting a 36% improvement from the year-ago reported level.
However, the company is likely to have incurred steep operating cost from escalated compensation and benefits, and clearing costs. While the elevation in compensation and benefits might have been due to addition of personnel to support business growth, clearing costs are likely to have shot up by inflated open trading volume and inclusion of matched principal treasury trading volume.
Earnings Surprise History
The company boasts an attractive earnings surprise history. Its bottom line beat estimates in three of the last four quarters (and missed in one), delivering a surprise of 1.09%, on average. This is depicted in the chart below:
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. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: MarketAxess has an Earnings ESP of 0.00%.
Zacks Rank: MarketAxess currently sports a Zacks Rank of 1.
Stocks to Consider
Some stocks worth considering with the apt combination of elements to surpass estimates this reporting cycle are as follows:
Global Payments Inc. (GPN - Free Report) has an Earnings ESP of +5.86% and a Zacks Rank of 3 at present.
Mastercard Inc (MA - Free Report) has an Earnings ESP of +2.52% and is Zacks #3 Ranked.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Will High Trading Volumes Aid MarketAxess' (MKTX) Q2 Earnings?
MarketAxess Holdings Inc.’s (MKTX - Free Report) second-quarter 2020 earnings report is slated for Jul 22. The company is likely to have gained from higher total trading volumes in different categories, such as core products like U.S. high-grade, high-yield, the emerging markets and Eurobonds.
The Zacks Consensus Estimate for the company’s second-quarter earnings is pegged at $7.46 per share, indicating a 38.15% surge from the prior-year reported figure.
The acceleration of trading activity is likely to have resulted in strong financial results as well. The Zacks Consensus Estimate for the company’s second-quarter revenues is pegged at $674.23 million, indicating a 31.85% surge from the prior-year reported figure.
Due to low interest rates, companies must have issued more debt, inducing an increase in high-grade debt in the quarter. The industry players are also likely to have tapped their bank credit lines to improve their liquidity position. Evidently, debt issuance is expected to have grown in both private and public sectors, leading to even greater secondary trading opportunities. The Zacks Consensus Estimate for total U.S High-Grade trading volume is pegged at $344 billion, indicating a 29.64% rise from the year-ago reported figure.
The company is likely to have seen expanded trading volumes in municipal bonds and U.S. treasuries, driven by contribution from LiquidityEdge acquisition.
Trading commission, a key revenue driver of the company, is likely to have risen on the back of increased credit trading volume and inclusion of U.S. treasury trading commission. The Zacks Consensus Estimate for commission stands at $155 billion, suggesting a 36% improvement from the year-ago reported level.
However, the company is likely to have incurred steep operating cost from escalated compensation and benefits, and clearing costs. While the elevation in compensation and benefits might have been due to addition of personnel to support business growth, clearing costs are likely to have shot up by inflated open trading volume and inclusion of matched principal treasury trading volume.
Earnings Surprise History
The company boasts an attractive earnings surprise history. Its bottom line beat estimates in three of the last four quarters (and missed in one), delivering a surprise of 1.09%, on average. This is depicted in the chart below:
MarketAxess Holdings Inc. Price and EPS Surprise
MarketAxess Holdings Inc. price-eps-surprise | MarketAxess Holdings Inc. Quote
Here is what our quantitative model predicts:
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. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: MarketAxess has an Earnings ESP of 0.00%.
Zacks Rank: MarketAxess currently sports a Zacks Rank of 1.
Stocks to Consider
Some stocks worth considering with the apt combination of elements to surpass estimates this reporting cycle are as follows:
Cboe Global Markets, Inc. (CBOE - Free Report) has an Earnings ESP of +0.48% and a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Global Payments Inc. (GPN - Free Report) has an Earnings ESP of +5.86% and a Zacks Rank of 3 at present.
Mastercard Inc (MA - Free Report) has an Earnings ESP of +2.52% and is Zacks #3 Ranked.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>