Electronic bond trading platform MarketAxess (NASDAQ: MKTX) will be announcing earnings results this Friday before market open. Here’s what investors should know.
MarketAxess met analysts’ revenue expectations last quarter, reporting revenues of $219.5 million, up 11% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but .
Is MarketAxess a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting MarketAxess’s revenue to be flat year on year at $207.4 million, slowing from the 20% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.70 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. MarketAxess has missed Wall Street’s revenue estimates five times over the last two years.
Looking at MarketAxess’s peers in the financial exchanges & data segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Moody's delivered year-on-year revenue growth of 10.7%, beating analysts’ expectations by 2.4%, and S&P Global reported revenues up 8.8%, topping estimates by 1.1%. Moody's traded down 1.2% following the results while S&P Global was up 2.9%.
Read our full analysis of Moody’s results here and S&P Global’s results here.
Investors in the financial exchanges & data segment have had fairly steady hands going into earnings, with share prices down 1.3% on average over the last month. MarketAxess is down 4.3% during the same time and is heading into earnings with an average analyst price target of $202.67 (compared to the current share price of $160.87).
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