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Will High Trading Volumes Aid MarketAxess (MKTX) Q4 Earnings?
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MarketAxess Holdings Inc. (MKTX - Free Report) is scheduled to report fourth-quarter 2020 and full-year earnings results on Jan 27.
The Zacks Consensus Estimate for the company’s fourth-quarter earnings and revenues is pegged at $1.26 per share and $9.4 billion, respectively, indicating a plunge of 37.93% and 17.3% each from the corresponding prior-year quarter’s reported figures.
Factors to Impact Q4 Results
The company’s fourth-quarter reported average daily volume (ADV) of $23.6 billion rose 12% year over year, led by higher trading in U.S. high-grade bonds and other credit bonds.
The company’s strong quarterly volumes also already reflect its accelerating market share gains, robust credit market volumes and a global shift among dealers and investors toward fixed income trading automation.
The company further announced its preliminary variable transaction fees per million (FPM) of $187 for U.S. high-grade, $202 for other credit, $195 for total credit and $3.95 for rates for the quarter ended Dec 31, 2020, which represented a decline of 6.2%, 2.9%, 4.3% and 5.7%, respectively.
The company’s growing lead in institutional customer order flow, robust investor and dealer network and unique technology solutions boost its competitive advantage in electronic credit trading for the long haul. These in turn, are likely to have bumped up revenues in the to-be-reported quarter. The December quarter is likely to have witnessed higher compensation and benefit expenses and the company has appointed personnel to support its growth initiatives. The increase in depreciation and amortization is likely to have resulted from the company’s continued investment in product development along with the amortization of acquired intangibles.
Clearing costs are also expected to have escalated due to expanded open trading volume and the inclusion of match Principal treasury trading volume.
Marketing expenses might have declined owing to COVID limitations on sales-related T&E expense.
Earnings Surprise History
The company boasts a stellar earnings surprise record. Its bottom line beat estimates in each of the trailing four quarters, the average being 2.71%. This is depicted in the chart below:
Our proven model predicts 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 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 +0.79%.
Zacks Rank: MarketAxess currently has a Zacks Rank #2.
Other Stocks to Consider
Some other stocks worth considering with the apt combination of elements to surpass estimates this reporting cycle are as follows:
AXOS FINANCIAL Inc. (AX - Free Report) has an Earnings ESP of +4.94% and is presently Zacks #3 Ranked. The company is scheduled to release fourth-quarter earnings on Jan 28.
Houlihan Lokey, Inc. (HLI - Free Report) is set to report fourth-quarter earnings on Jan 28. The stock currently has a Zacks Rank of 2 and an Earnings ESP of +5.40%.
Intercontinental Exchange Inc. (ICE - Free Report) is slated to announce fourth-quarter earnings on Feb 4. The stock has an Earnings ESP of +0.40% and is a #3 Ranked player, presently.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Will High Trading Volumes Aid MarketAxess (MKTX) Q4 Earnings?
MarketAxess Holdings Inc. (MKTX - Free Report) is scheduled to report fourth-quarter 2020 and full-year earnings results on Jan 27.
The Zacks Consensus Estimate for the company’s fourth-quarter earnings and revenues is pegged at $1.26 per share and $9.4 billion, respectively, indicating a plunge of 37.93% and 17.3% each from the corresponding prior-year quarter’s reported figures.
Factors to Impact Q4 Results
The company’s fourth-quarter reported average daily volume (ADV) of $23.6 billion rose 12% year over year, led by higher trading in U.S. high-grade bonds and other credit bonds.
The company’s strong quarterly volumes also already reflect its accelerating market share gains, robust credit market volumes and a global shift among dealers and investors toward fixed income trading automation.
The company further announced its preliminary variable transaction fees per million (FPM) of $187 for U.S. high-grade, $202 for other credit, $195 for total credit and $3.95 for rates for the quarter ended Dec 31, 2020, which represented a decline of 6.2%, 2.9%, 4.3% and 5.7%, respectively.
The company’s growing lead in institutional customer order flow, robust investor and dealer network and unique technology solutions boost its competitive advantage in electronic credit trading for the long haul. These in turn, are likely to have bumped up revenues in the to-be-reported quarter.
The December quarter is likely to have witnessed higher compensation and benefit expenses and the company has appointed personnel to support its growth initiatives. The increase in depreciation and amortization is likely to have resulted from the company’s continued investment in product development along with the amortization of acquired intangibles.
Clearing costs are also expected to have escalated due to expanded open trading volume and the inclusion of match Principal treasury trading volume.
Marketing expenses might have declined owing to COVID limitations on sales-related T&E expense.
Earnings Surprise History
The company boasts a stellar earnings surprise record. Its bottom line beat estimates in each of the trailing four quarters, the average being 2.71%. 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 predicts 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 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 +0.79%.
Zacks Rank: MarketAxess currently has a Zacks Rank #2.
Other Stocks to Consider
Some other stocks worth considering with the apt combination of elements to surpass estimates this reporting cycle are as follows:
AXOS FINANCIAL Inc. (AX - Free Report) has an Earnings ESP of +4.94% and is presently Zacks #3 Ranked. The company is scheduled to release fourth-quarter earnings on Jan 28.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Houlihan Lokey, Inc. (HLI - Free Report) is set to report fourth-quarter earnings on Jan 28. The stock currently has a Zacks Rank of 2 and an Earnings ESP of +5.40%.
Intercontinental Exchange Inc. (ICE - Free Report) is slated to announce fourth-quarter earnings on Feb 4. The stock has an Earnings ESP of +0.40% and is a #3 Ranked player, presently.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>