MarketAxess Holdings Inc. (MKTX - Free Report) is expected to witness a decline in earnings from the year-ago reported figure when it reports third-quarter 2021 earnings results on Oct 20, 2021.
Estimate Trend
The consensus estimate for September-quarter earnings of this operator of bond trading platforms is pegged at $1.51 per share, which indicates a decrease of 15.2% from the prior-year period’s reported number.
The consensus mark for revenues stands at $170.92 million, suggesting a 4.21% rise from the year-ago quarter’s reported figure.
Factors to Watch
MarketAxess already released total trading volume of $1.53 trillion for the third quarter, which was up 13% year over year but down 1.9%, sequentially.
MarketAxess earns commission and fees revenues on the bond trading executed on its platforms. Thus, increase in trading volumes is expected to have buoyed commission and fees revenues in the September quarter, which constitute 90% of the company’s top line.
Margins are likely to have been stressed by high expenses. The company expects total expenses for 2021 in the range of $370-$386, indicating a rise from the previous projection of $362-$382 million.
Earnings Surprise History
The company’s earnings beat estimates in three of the last four quarters (missed the mark in one), the average surprise being 2.75%. This is depicted in the chart below:
Here is what our quantitative model predicts:
Our proven model does not 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, which 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 -10.72%.
Zacks Rank: MarketAxess currently has a Zacks Rank #5 (Strong Sell).
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 +3.77% and a Zack Rank #2, presently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tradeweb Markets Inc. (TW - Free Report) has an Earnings ESP of +2.63% and a Zacks Rank #3, presently.
Intercontinental Exchange Inc. (ICE - Free Report) has an Earnings ESP of +2.99% and a Zacks Rank of #3, presently.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
MarketAxess Holdings Inc. (MKTX - Free Report) is expected to witness a decline in earnings from the year-ago reported figure when it reports third-quarter 2021 earnings results on Oct 20, 2021.
Estimate Trend
The consensus estimate for September-quarter earnings of this operator of bond trading platforms is pegged at $1.51 per share, which indicates a decrease of 15.2% from the prior-year period’s reported number.
The consensus mark for revenues stands at $170.92 million, suggesting a 4.21% rise from the year-ago quarter’s reported figure.
Factors to Watch
MarketAxess already released total trading volume of $1.53 trillion for the third quarter, which was up 13% year over year but down 1.9%, sequentially.
MarketAxess earns commission and fees revenues on the bond trading executed on its platforms. Thus, increase in trading volumes is expected to have buoyed commission and fees revenues in the September quarter, which constitute 90% of the company’s top line.
Margins are likely to have been stressed by high expenses. The company expects total expenses for 2021 in the range of $370-$386, indicating a rise from the previous projection of $362-$382 million.
Earnings Surprise History
The company’s earnings beat estimates in three of the last four quarters (missed the mark in one), the average surprise being 2.75%. This is depicted in the chart below:
Here is what our quantitative model predicts:
Our proven model does not 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, which 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 -10.72%.
Zacks Rank: MarketAxess currently has a Zacks Rank #5 (Strong Sell).
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 +3.77% and a Zack Rank #2, presently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tradeweb Markets Inc. (TW - Free Report) has an Earnings ESP of +2.63% and a Zacks Rank #3, presently.
Intercontinental Exchange Inc. (ICE - Free Report) has an Earnings ESP of +2.99% and a Zacks Rank of #3, presently.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on ICE - FREE
Get the latest research report on CBOE - FREE
Get the latest research report on TW - FREE
Get the latest research report on MKTX - FREE