Earnings Results Analysis: MarketAxess Holdings Inc. (NASDAQ: MKTX)

Charles Barnes

I am Charles Barnes and I focus on breaking news stories and ensuring we (“Import Tourism”) offer timely reporting on some of the most recent stories released through market wires about “Financial” sector.

I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for Import Tourism specializing in quicker moving active shares with a short term view on investment opportunities and trends.

Address: 3819 Sun Valley Road, George, WA 98824, USA
Phone: (+1) 509-785-0774
Email: charlesbarnes@importtourism.com
Charles Barnes

NEW YORK, June 29, 2019 – Shares of MarketAxess Holdings Inc. (NASDAQ: MKTX) showed the bullish trend with a higher momentum of 1.61% to $321.42. The company traded total volume of 7.59M shares as contrast to its average volume of 374.36K shares. The company has a market value of $12.05B and about 37.50M shares outstanding.

MarketAxess Holdings Inc. (MKTX) reported first-quarter profit of $52.50M.

First Quarter Results:

Total revenues for the first quarter of 2019 increased 8.5% to $124.50M, contrast to $114.70M for the first quarter of 2018. Operating income was $63.20M, contrast to $60.20M for the first quarter of 2018, a boost of 5.0%. Operating margin was 50.8%, contrast to 52.5% for the first quarter of 2018. Net income totaled $52.50M, or $1.39 per share on a diluted basis, contrast to $47.90M, or $1.27 per share, for the first quarter of 2018.

Commission revenue for the first quarter of 2019 increased 9.7% to $112.80M, contrast to $102.80M for the first quarter of 2018. Variable transaction fees increased 11.7% to $89.10M on total trading volume of $526.20B for the first quarter of 2019, contrast to variable transaction fees of $79.80M on total trading volume of $465.00B for the first quarter of 2018. U.S. high-grade trading volume as a percentage of FINRA’s high-grade TRACE trading volume reduced to an estimated 17.6% for the first quarter of 2019, contrast to an estimated 18.0% for the first quarter of 2018.

All other revenue, which consists of information services, post-trade services and other revenue, reduced to $11.70M, contrast to $11.90M for the first quarter of 2018. The decrease in all other revenue was principally because of the unfavorable impact of the stronger U.S. dollar of $0.50M offset by higher data revenue.

Total expenses for the first quarter of 2019 increased 12.4% to $61.30M, contrast to $54.50M for the first quarter of 2018. The increase in total expenses was mostly because of higher employee compensation and benefit costs, mainly because of a boost in headcount, of $3.80M, clearing costs of $0.90M, depreciation and amortization of $0.80M and professional and consulting fees of $0.80M.

Other income increased to $2.00M from $0.80M principally because of a $0.80M increase in investment income as a result of higher investment balances and a boost in interest rates.

Share Repurchases:

A total of 23,365 shares were repurchased in the first quarter of 2019 at a cost of $5.20M.

Balance Sheet Data:

As of March 31, 2019, total assets were $774.80M and included $483.40M in cash, cash equivalents and investments. On January 1, 2019, the Company adopted a new lease accounting standard and recorded new operating lease right-of-use assets of $79.50M, eliminated a deferred rent liability of $11.70M and recorded lease liabilities associated with the future minimum payments required under operating leases of $91.20M. Total stockholders’ equity as of March 31, 2019 was $631.10M.

The Company offered net profit margin of 39.80% while its gross profit margin was 94.60%. ROE was recorded as 29.90% while beta factor was 0.25. The stock, as of recent close, has shown the weekly downbeat performance of -3.50% which was maintained at 52.11% in this year.

Charles Barnes

Charles Barnes

I am Charles Barnes and I focus on breaking news stories and ensuring we (“Import Tourism”) offer timely reporting on some of the most recent stories released through market wires about “Financial” sector. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for Import Tourism specializing in quicker moving active shares with a short term view on investment opportunities and trends. Address: 3819 Sun Valley Road, George, WA 98824, USA Phone: (+1) 509-785-0774 Email: charlesbarnes@importtourism.com