The 10-second takeaway
For the quarter ended Sep. 30 (Q3), MarketAxess Holdings beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded.
Margins contracted across the board.
MarketAxess Holdings chalked up revenue of $48.3 million. The six analysts polled by S&P Capital IQ foresaw revenue of $47.7 million on the same basis. GAAP reported sales were 3.6% higher than the prior-year quarter's $46.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.36. The four earnings estimates compiled by S&P Capital IQ predicted $0.32 per share. GAAP EPS of $0.36 for Q3 were 5.9% higher than the prior-year quarter's $0.34 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.9%, 170 basis points worse than the prior-year quarter. Operating margin was 44.0%, 390 basis points worse than the prior-year quarter. Net margin was 27.9%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $48.5 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $194.8 million. The average EPS estimate is $1.33.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 41 members out of 51 rating the stock outperform, and 10 members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give MarketAxess Holdings a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MarketAxess Holdings is hold, with an average price target of $33.75.
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