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MarketAxess (MKTX) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended June 2023, MarketAxess (MKTX - Free Report) reported revenue of $179.85 million, down 1.3% over the same period last year. EPS came in at $1.63, compared to $1.78 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $181.34 million, representing a surprise of -0.82%. The company delivered an EPS surprise of +3.16%, with the consensus EPS estimate being $1.58.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how MarketAxess performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Average Variable Transaction Fee Per Million - Rates: $4.70 versus the three-analyst average estimate of $4.46.
Average Variable Transaction Fee Per Million - Credit: $157.42 versus $158.85 estimated by two analysts on average.
Total Trading Volume: $1,720.96 billion compared to the $2,333.02 billion average estimate based on two analysts.
Total Trading Volume - Total credit trading - High-grade: $353.24 billion versus the two-analyst average estimate of $378.57 billion.
Revenues- Information services: $11.66 million versus $10.86 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +24% change.
Revenues- Commissions: $158.59 million versus $165.01 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -3% change.
Revenues- Post-trade services: $9.42 million versus $9.62 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +3% change.
Revenues- Other: $0.19 million versus $0.20 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -15.9% change.
Total commission revenue- Total variable transaction fees: $123.26 million versus the three-analyst average estimate of $133.42 million. The reported number represents a year-over-year change of -6.5%.
Total commission revenue- Total fixed distribution fees: $35.33 million versus the three-analyst average estimate of $34.46 million. The reported number represents a year-over-year change of +11.7%.
Total commission revenue- Total fixed distribution fees- Credit: $35.27 million compared to the $33.91 million average estimate based on two analysts.
Total commission revenue- Total variable transaction fees- Credit: $118.71 million versus the two-analyst average estimate of $123.85 million.
Shares of MarketAxess have returned -2.2% over the past month versus the Zacks S&P 500 composite's +3.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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MarketAxess (MKTX) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended June 2023, MarketAxess (MKTX - Free Report) reported revenue of $179.85 million, down 1.3% over the same period last year. EPS came in at $1.63, compared to $1.78 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $181.34 million, representing a surprise of -0.82%. The company delivered an EPS surprise of +3.16%, with the consensus EPS estimate being $1.58.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how MarketAxess performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Average Variable Transaction Fee Per Million - Rates: $4.70 versus the three-analyst average estimate of $4.46.
- Average Variable Transaction Fee Per Million - Credit: $157.42 versus $158.85 estimated by two analysts on average.
- Total Trading Volume: $1,720.96 billion compared to the $2,333.02 billion average estimate based on two analysts.
- Total Trading Volume - Total credit trading - High-grade: $353.24 billion versus the two-analyst average estimate of $378.57 billion.
- Revenues- Information services: $11.66 million versus $10.86 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +24% change.
- Revenues- Commissions: $158.59 million versus $165.01 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -3% change.
- Revenues- Post-trade services: $9.42 million versus $9.62 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +3% change.
- Revenues- Other: $0.19 million versus $0.20 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -15.9% change.
- Total commission revenue- Total variable transaction fees: $123.26 million versus the three-analyst average estimate of $133.42 million. The reported number represents a year-over-year change of -6.5%.
- Total commission revenue- Total fixed distribution fees: $35.33 million versus the three-analyst average estimate of $34.46 million. The reported number represents a year-over-year change of +11.7%.
- Total commission revenue- Total fixed distribution fees- Credit: $35.27 million compared to the $33.91 million average estimate based on two analysts.
- Total commission revenue- Total variable transaction fees- Credit: $118.71 million versus the two-analyst average estimate of $123.85 million.
View all Key Company Metrics for MarketAxess here>>>Shares of MarketAxess have returned -2.2% over the past month versus the Zacks S&P 500 composite's +3.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.