The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MarketAxess Holdings met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved significantly.
Margins improved across the board.
MarketAxess Holdings logged revenue of $45.1 million. The four analysts polled by S&P Capital IQ looked for a top line of $45.0 million. Sales were 17% higher than the prior-year quarter's $38.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.31. The four earnings estimates compiled by S&P Capital IQ predicted $0.30 per share on the same basis. GAAP EPS of $0.29 for Q4 were 26% higher than the prior-year quarter's $0.23 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 63.2%, 640 basis points better than the prior-year quarter. Operating margin was 41.8%, 1,190 basis points better than the prior-year quarter. Net margin was 25.6%, 240 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $49.4 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $201.0 million. The average EPS estimate is $1.36.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 42 members out of 51 rating the stock outperform, and nine members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give MarketAxess Holdings a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MarketAxess Holdings is outperform, with an average price target of $31.80.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.