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Based in New York, MarketAxess Holdings Inc. (MKTX) is a premier multi-dealer trading platform that connects institutional investors with global liquidity across a wide range of fixed-income securities, including U.S. high-grade corporate bonds, high-yield bonds, and emerging market debt. Valued at a market cap of $9.7 billion, the company derives its revenue from commissions, information services, and post-trade solutions. It is all geared to announce its Q3 earnings for fiscal 2024 on Wednesday, Oct. 23.
Ahead of the event, analysts expect MarketAxess to report a profit of $1.64 per share, up 12.3% from $1.46 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in three of the last four quarters while missing on one occasion. Its EPS of $1.72 beat the consensus estimate by 1.8% in the previous quarter.
Looking ahead, analysts expect MarketAxess to report an EPS of $7.06 in fiscal 2024, up 2.5% from $6.89 in the fiscal year 2023. Its fiscal 2025 EPS is projected to rise 12.8% year over year to $7.96.
MKTX stock has surged 33.8% over the past 52 weeks, slightly underperforming the broader S&P 500 Index's ($SPX) 34.8% gains and the Financial Select Sector SPDR Fund’s (XLF) 38.7% returns over the same time frame.
On Oct. 3, MKTX rose over 7% after reporting a 52.5% year-over-year surge in total average daily volume on its electronic trading platform for September.
Despite missing Wall Street’s revenue estimates, shares of MKTX jumped 5.2% following its Q2 earnings release on Aug. 6. The company's geographic expansion and product diversification contributed to a rise in the average daily volume (ADV) of emerging markets and Eurobonds, which helped to bolster investor confidence.
MarketAxess stock has a “Moderate Buy” rating overall, which is a step up from “Hold” three months ago. Among the 14 analysts covering the stock, four recommend a "Strong Buy," nine suggest a "Hold," and the remaining one advises a “Moderate Sell.”
While MKTX currently trades above its mean price target of $240.31, the Street-high target of $310 represents a potential upswing of 13.2% from the prevailing price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
