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.
MarketAxess (MKTX) Gears Up for Q2 Earnings: What's in Store?
Read MoreHide Full Article
MarketAxess Holdings Inc. (MKTX - Free Report) is set to report second-quarter 2022 results on Jul 20, before the opening bell.
In the last reported quarter, this leading electronic trading platform operator reported adjusted earnings per share of $1.73, beating the Zacks Consensus Estimate by 1.8%, backed by higher trading volumes. This was partially offset by escalating costs.
MarketAxess beat the consensus estimate in three of the four prior quarters and missed once, with the average earnings surprise being 2.5%. This is depicted in the graph below:
The Zacks Consensus Estimate for second-quarter earnings per share of $1.74 has witnessed two downward movements and no upward revision in the past week. The estimated figure suggests a decrease of 1.7% from the prior-year reported number.
However, the consensus estimate for second-quarter revenues of $187.1 million indicates a 6.1% increase from the year-ago reported figure.
Factors to Note
The Zacks Consensus Estimate for average daily volume total credit for the second quarter is pegged at $12,139 million, indicating a jump from $10,664 million a year ago. The consensus estimate for total commissions indicates a 6.4% year-over-year increase.
The Zacks Consensus Estimate for total distribution fees is pegged at $31.4 million, indicating an increase from $29.3 million in the year-ago period. The consensus mark for total transaction fees is pegged at $134 million, signaling an increase from the year-ago level of $127 million.
The above-mentioned projections might have boosted MKTX’s top line in the second quarter. However, the Zacks Consensus Estimate for average variable transaction fee per million rates indicates a 4.9% year-over-year decline, which might have affected its profit levels.
Furthermore, high expenses due to ongoing investments in several areas including the trading platform, new protocols and infrastructure as well as headcount additions are likely to have put margins under pressure, reducing the bottom line. This makes an earnings beat look uncertain for MKTX in the second quarter.
Earnings Whispers
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. That is not the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is -0.65%, as the Most Accurate Estimate is currently pegged at $1.73 per share, lower than the Zacks Consensus Estimate of $1.74.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: MarketAxess currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for MarketAxess, here are some companies from the Finance space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Discover Financial’s bottom line for the to-be-reported quarter is expected to benefit from its solid market position, expansion in the global payments business and attractive core business. DFS witnessed four upward estimate revisions in the past 60 days compared with one in the opposite direction.
American Express Company (AXP - Free Report) has an Earnings ESP of +1.90% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for American Express’ top line for the to-be-reported quarter is pegged at $12.4 billion, implying a 21.1% improvement from the year-ago figure. AXP witnessed two upward estimate revisions in the past 30 days compared with none in the opposite direction.
CME Group Inc. (CME - Free Report) has an Earnings ESP of +0.90% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for CME Group’s bottom line for the to-be-reported quarter indicates a 15.2% jump from a year ago. The consensus mark for CME’s top line indicates a 3.4% year-over-year increase.
Image: Bigstock
MarketAxess (MKTX) Gears Up for Q2 Earnings: What's in Store?
MarketAxess Holdings Inc. (MKTX - Free Report) is set to report second-quarter 2022 results on Jul 20, before the opening bell.
In the last reported quarter, this leading electronic trading platform operator reported adjusted earnings per share of $1.73, beating the Zacks Consensus Estimate by 1.8%, backed by higher trading volumes. This was partially offset by escalating costs.
MarketAxess beat the consensus estimate in three of the four prior quarters and missed once, with the average earnings surprise being 2.5%. This is depicted in the graph below:
MarketAxess Holdings Inc. Price and EPS Surprise
MarketAxess Holdings Inc. price-eps-surprise | MarketAxess Holdings Inc. Quote
Let’s see how things have shaped up before the second-quarter earnings announcement.
Trend in Estimate Revision
The Zacks Consensus Estimate for second-quarter earnings per share of $1.74 has witnessed two downward movements and no upward revision in the past week. The estimated figure suggests a decrease of 1.7% from the prior-year reported number.
However, the consensus estimate for second-quarter revenues of $187.1 million indicates a 6.1% increase from the year-ago reported figure.
Factors to Note
The Zacks Consensus Estimate for average daily volume total credit for the second quarter is pegged at $12,139 million, indicating a jump from $10,664 million a year ago. The consensus estimate for total commissions indicates a 6.4% year-over-year increase.
The Zacks Consensus Estimate for total distribution fees is pegged at $31.4 million, indicating an increase from $29.3 million in the year-ago period. The consensus mark for total transaction fees is pegged at $134 million, signaling an increase from the year-ago level of $127 million.
The above-mentioned projections might have boosted MKTX’s top line in the second quarter. However, the Zacks Consensus Estimate for average variable transaction fee per million rates indicates a 4.9% year-over-year decline, which might have affected its profit levels.
Furthermore, high expenses due to ongoing investments in several areas including the trading platform, new protocols and infrastructure as well as headcount additions are likely to have put margins under pressure, reducing the bottom line. This makes an earnings beat look uncertain for MKTX in the second quarter.
Earnings Whispers
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. That is not the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is -0.65%, as the Most Accurate Estimate is currently pegged at $1.73 per share, lower than the Zacks Consensus Estimate of $1.74.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: MarketAxess currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for MarketAxess, here are some companies from the Finance space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Discover Financial Services (DFS - Free Report) has an Earnings ESP of +0.53% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Discover Financial’s bottom line for the to-be-reported quarter is expected to benefit from its solid market position, expansion in the global payments business and attractive core business. DFS witnessed four upward estimate revisions in the past 60 days compared with one in the opposite direction.
American Express Company (AXP - Free Report) has an Earnings ESP of +1.90% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for American Express’ top line for the to-be-reported quarter is pegged at $12.4 billion, implying a 21.1% improvement from the year-ago figure. AXP witnessed two upward estimate revisions in the past 30 days compared with none in the opposite direction.
CME Group Inc. (CME - Free Report) has an Earnings ESP of +0.90% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for CME Group’s bottom line for the to-be-reported quarter indicates a 15.2% jump from a year ago. The consensus mark for CME’s top line indicates a 3.4% year-over-year increase.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.