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MarketAxess (MKTX) Up 9.9% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for MarketAxess (MKTX - Free Report) . Shares have added about 9.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is MarketAxess due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
MarketAxess Q1 Earnings Beat Estimates, Up Y/Y
MarketAxess Holdings Inc.'s first-quarter 2019 earnings per share of $1.39 beat the Zacks Consensus Estimate by 1.5% and also improved 9.4% year over year.
Operational Update
Revenues totaled $124 million, up 7.8% year over year. The top line, however, missed the Zacks Consensus Estimate by 0.7%.
Commission revenues rose 10% year over year to $112.8 million. Information services revenues rose 4% year over year to $7.4 billion. Revenues from post-trade services and other income declined 10% and 12% respectively to $4.1 million and $0.3 million.
Total trading volume expanded 13% year over year to $526 billion.
Total expenses at MarketAxess escalated 12% from the prior-year quarter to $61.3 million. This rise was due to higher costs incurred for depreciation and amortization, clearing cost, general and administrative plus employee compensation and benefit.
Operating margin was 50.8%, down 170 basis points (bps) year over year. Financial Update
Total assets were $774.8 million as of Mar 31 2019, up 11.4% from year-end 2018 level.
Total cash, cash equivalents and investments were $261 million, up 6.1% from the figure at 2018 end.
As of Mar 31, 2019, total stockholders' equity was $631.1 million, up 4% from year-end 2018 levels. .
How Have Estimates Been Moving Since Then?
Fresh estimates followed a downward path over the past two months.
VGM Scores
Currently, MarketAxess has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
MarketAxess has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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MarketAxess (MKTX) Up 9.9% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for MarketAxess (MKTX - Free Report) . Shares have added about 9.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is MarketAxess due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
MarketAxess Q1 Earnings Beat Estimates, Up Y/Y
MarketAxess Holdings Inc.'s first-quarter 2019 earnings per share of $1.39 beat the Zacks Consensus Estimate by 1.5% and also improved 9.4% year over year.
Operational Update
Revenues totaled $124 million, up 7.8% year over year. The top line, however, missed the Zacks Consensus Estimate by 0.7%.
Commission revenues rose 10% year over year to $112.8 million. Information services revenues rose 4% year over year to $7.4 billion. Revenues from post-trade services and other income declined 10% and 12% respectively to $4.1 million and $0.3 million.
Total trading volume expanded 13% year over year to $526 billion.
Total expenses at MarketAxess escalated 12% from the prior-year quarter to $61.3 million. This rise was due to higher costs incurred for depreciation and amortization, clearing cost, general and administrative plus employee compensation and benefit.
Operating margin was 50.8%, down 170 basis points (bps) year over year.
Financial Update
Total assets were $774.8 million as of Mar 31 2019, up 11.4% from year-end 2018 level.
Total cash, cash equivalents and investments were $261 million, up 6.1% from the figure at 2018 end.
As of Mar 31, 2019, total stockholders' equity was $631.1 million, up 4% from year-end 2018 levels. .
How Have Estimates Been Moving Since Then?
Fresh estimates followed a downward path over the past two months.
VGM Scores
Currently, MarketAxess has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
MarketAxess has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.