Why Is MarketAxess (MKTX) Down 11.1% Since Last Earnings Report?

Zacks2024-12-07

It has been about a month since the last earnings report for MarketAxess (MKTX). Shares have lost about 11.1% in that time frame, underperforming the S&P 500. Will the recent negative trend continue ...

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Shares have lost about 11.1% in that time frame, underperforming the S&P 500.\nWill the recent negative trend continue ...</p>\n\n<a href=\"https://finance.yahoo.com/news/why-marketaxess-mktx-down-11-163121426.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Is MarketAxess (MKTX) Down 11.1% Since Last Earnings Report?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Is MarketAxess (MKTX) Down 11.1% Since Last Earnings Report?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-07 00:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/why-marketaxess-mktx-down-11-163121426.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>It has been about a month since the last earnings report for MarketAxess (MKTX). Shares have lost about 11.1% in that time frame, underperforming the S&P 500.\nWill the recent negative trend continue ...</p>\n\n<a href=\"https://finance.yahoo.com/news/why-marketaxess-mktx-down-11-163121426.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"MKTX","symbol_name":"MarketAxess Holdings","start_time":0,"source_url":"https://finance.yahoo.com/news/why-marketaxess-mktx-down-11-163121426.html","article_id":"2489493251","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/gUf3JPAiwp3PVjuDKftvaA--~B/aD04NDU7dz05MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/26a86d59f0e8f1e82a35a92ae5684cd9"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2489493251","pubTimestamp":1733502681,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"It has been about a month since the last earnings report for MarketAxess . Shares have lost about 11.1% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is MarketAxess due for a breakout?Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.MarketAxess Q3 Earnings Beat on Strong Credit Trading Volumes. MarketAxess has reported third-quarter 2024 earnings per share of $1.90, which surpassed the Zacks Consensus Estimate by 4.4%. The bottom line grew 30.1% year over year.Total revenues of $206.7 million rose 20% year over year. The top line surpassed the consensus mark by a whisker.The strong quarterly results were driven by improving U.S. high-grade, emerging markets and Eurobonds commission revenues. Higher service revenues added to the upside. Geographic expansion and prod","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"MKTX":"MarketAxess Holdings"},"translate_title":"为什么MarketAxess(MKTX)自上次收益报告以来下跌了11.1%？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MKTX":1},"content_text":"It has been about a month since the last earnings report for MarketAxess (MKTX). Shares have lost about 11.1% in that time frame, underperforming the S&P 500.\nWill the recent negative trend continue leading up to its next earnings release, or is MarketAxess due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. \nMarketAxess Q3 Earnings Beat on Strong Credit Trading Volumes\nMarketAxess has reported third-quarter 2024 earnings per share of $1.90, which surpassed the Zacks Consensus Estimate by 4.4%. The bottom line grew 30.1% year over year.\nTotal revenues of $206.7 million rose 20% year over year. The top line surpassed the consensus mark by a whisker.\nThe strong quarterly results were driven by improving U.S. high-grade, emerging markets and Eurobonds commission revenues. Higher service revenues added to the upside. Geographic expansion and product diversification drove the average daily volume (ADV) of emerging markets and Eurobonds. However, the upside was partly offset by an elevated expense level.\nQuarterly Operational Update\nCommission revenues were $180.4 million, which increased 20% year over year, and beat the Zacks Consensus Estimate of $178.7 million and our estimate of $168.7 million. The improvement in the metric was driven by better commission revenues in the U.S. high-grade, Eurobonds and emerging markets. Information services’ revenues improved 10% year over year to $13 million. The figure beat the consensus mark of $12.8 million and our estimate of $12 million. The metric benefited on the back of net new data contract revenues.\nPost-trade services revenues of $10.4 million improved 6% year over year, attributable to net new contract revenues. However, the reported figure missed the consensus mark by 2.5%. Revenues from the Pragma acquisition were $7.7 million.\nTotal expenses of $119.7 million escalated 14% year over year due to higher employee compensation and benefits, technology and communication and marketing and advertising expenses. However, the metric fell marginally short of our estimate of $119.9 million.\nMKTX’s operating income rose 30% year over year to $87.1 million, beating our estimate of $74.7 million. EBITDA of $105 million improved 27% year over year and the EBITDA margin improved 270 bps to 50.8%.\nTrading Volumes in Detail\nThe high-grade trading volume of MarketAxess was $449.7 billion, which improved 38% year over year and beat the Zacks Consensus Estimate of $449.7 billion. The ADV of the same product category improved 36% year over year to $7 billion, beating the consensus mark of $6.6 billion and our estimate of $6.3 billion.\nHowever, high-yield trading volume improved 0.3% year over year, while its ADV fell 1% due to a reduced level of credit spread volatility.\nOther credit trading volume jumped 49% to $37.6 billion, whereas ADV for the same product category rose 47% year over year to $587 million.\nTrading volume and ADV of emerging markets rose 21% and 19%, respectively, on a year-over-year basis. The Eurobonds’ trading volume and ADV grew 49% and 47%, respectively.\nTotal credit trading volume of $905.3 billion advanced 29% year over year and surpassed the Zacks Consensus Estimate of $886.2 billion. Total credit ADV rose 27% to $14.1 billion, beating the consensus mark of $13.7 billion and our estimate of $13.3 billion.\nTotal rates’ trading volume jumped 48% and ADV of this product category improved 38% year over year.\nBalance Sheet (As of Sept. 30, 2024)\nMarketAxess exited the third quarter with cash and cash equivalents of $446.3 million, which declined 1.1% from the 2023 end. Total assets of $1.8 billion decreased 9% year over year.\nThe company had no outstanding borrowing under its credit facility at the third-quarter end. Total stockholders’ equity of $1.4 billion grew 7.2% from the 2023 end.\nCash Flows\nCash generated from operations amounted to $95.1 million compared to the previous year's figure of $79.2 million. The free cash flow was $86.3 million, which rose 15.4% year over year.\nCapital Deployment Update\nMarketAxess bought back shares worth $15 million. The capacity of $236.1 million was left under the company’s authorized repurchase program as of Oct. 31, 2024.\nManagement approved a quarterly cash dividend of 74 cents per share, which will be paid out on Dec. 4, 2024, to shareholders of record as of Nov. 20.\nHow Have Estimates Been Moving Since Then?\nIn the past month, investors have witnessed an upward trend in estimates revision.\nVGM Scores\nCurrently, MarketAxess has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.\nOverall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.\nOutlook\nEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise MarketAxess has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.\nPerformance of an Industry Player\nMarketAxess belongs to the Zacks Securities and Exchanges industry. Another stock from the same industry, Nasdaq (NDAQ), has gained 4% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.\nNasdaq reported revenues of $1.15 billion in the last reported quarter, representing a year-over-year change of +21.9%. EPS of $0.74 for the same period compares with $0.71 a year ago.\nFor the current quarter, Nasdaq is expected to post earnings of $0.74 per share, indicating a change of +2.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.\nThe overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Nasdaq. Also, the stock has a VGM Score of F.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nMarketAxess Holdings Inc. (MKTX) : Free Stock Analysis Report\nNasdaq, Inc. (NDAQ) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2489493251"}