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MarketAxess (MKTX) Q2 Earnings Surpass on Trading Growth
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MarketAxess Holdings Inc.’s (MKTX - Free Report) second-quarter 2018 earnings per share of $1.07 beat the Zacks Consensus Estimate by 1.9% and grew 7% year over year.
Better-than-expected results were driven by increased trading volumes, year-over-year market share gains across its core products and record open trading activity.
MarketAxess Holdings Inc. Price, Consensus and EPS Surprise
Second-quarter revenues were a record $107 million, up 11.1% year over year and in line with the Zacks Consensus Estimate.
Commission revenues increased 10.5% year over year to $96.1 million. All other revenues, which consist of information services, post-trade services and other revenues, increased 16.7% to $10.9 million.
Total trading volume increased 16.4% year over year to $420.8 billion year over year.
Total expenses at MarketAxess increased 16.1% from the prior-year quarter to $54.93 million. This rise was due to higher costs incurred for employee compensation and benefit, technology and communication, and occupancy.
The effective tax rate was 23.9% in the second quarter compared with 23.3% in the year-ago quarter. The prior-year quarter gained from excess tax benefits.
Financial Update
Total assets were $617.6 million as of Jun 30, 2018, up 6.2% from year-end 2017.
Total cash, cash equivalents and investments were $420.3 million, up 3.3% from year-end 2017.
Free cash flow totaled $44 million, up 33% year over year.
Share Repurchase and Dividend Update
MarketAxess bought back shares worth $6.6 million in the second quarter. The company's board of directors declared a quarterly cash dividend of 42 cents per share. The same will be paid out on Aug 23, 2018 to stockholders of record as of the close of business on Aug 9, 2018.
Among the other players from the finance sector, American Express Co. (AXP - Free Report) , Capital One Financial Corp. (COF - Free Report) and Alliance Data Systems Corp. beat earnings by 0.55%, 22.4% and 11.11%, respectively, in the second quarter.
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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MarketAxess (MKTX) Q2 Earnings Surpass on Trading Growth
MarketAxess Holdings Inc.’s (MKTX - Free Report) second-quarter 2018 earnings per share of $1.07 beat the Zacks Consensus Estimate by 1.9% and grew 7% year over year.
Better-than-expected results were driven by increased trading volumes, year-over-year market share gains across its core products and record open trading activity.
MarketAxess Holdings Inc. Price, Consensus and EPS Surprise
MarketAxess Holdings Inc. Price, Consensus and EPS Surprise | MarketAxess Holdings Inc. Quote
Operational Update
Second-quarter revenues were a record $107 million, up 11.1% year over year and in line with the Zacks Consensus Estimate.
Commission revenues increased 10.5% year over year to $96.1 million. All other revenues, which consist of information services, post-trade services and other revenues, increased 16.7% to $10.9 million.
Total trading volume increased 16.4% year over year to $420.8 billion year over year.
Total expenses at MarketAxess increased 16.1% from the prior-year quarter to $54.93 million. This rise was due to higher costs incurred for employee compensation and benefit, technology and communication, and occupancy.
The effective tax rate was 23.9% in the second quarter compared with 23.3% in the year-ago quarter. The prior-year quarter gained from excess tax benefits.
Financial Update
Total assets were $617.6 million as of Jun 30, 2018, up 6.2% from year-end 2017.
Total cash, cash equivalents and investments were $420.3 million, up 3.3% from year-end 2017.
Free cash flow totaled $44 million, up 33% year over year.
Share Repurchase and Dividend Update
MarketAxess bought back shares worth $6.6 million in the second quarter.
The company's board of directors declared a quarterly cash dividend of 42 cents per share. The same will be paid out on Aug 23, 2018 to stockholders of record as of the close of business on Aug 9, 2018.
Zacks Rank & Other Releases
MarketAxess carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among the other players from the finance sector, American Express Co. (AXP - Free Report) , Capital One Financial Corp. (COF - Free Report) and Alliance Data Systems Corp. beat earnings by 0.55%, 22.4% and 11.11%, respectively, in the second quarter.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>