The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MarketAxess Holdings met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Margins grew across the board.
MarketAxess Holdings recorded revenue of $50.4 million. The six analysts polled by S&P Capital IQ hoped for net sales of $50.5 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $45.1 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 five earnings estimates compiled by S&P Capital IQ anticipated $0.36 per share. GAAP EPS of $0.54 for Q4 were 86% higher than the prior-year quarter's $0.29 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 93.0%, 2,980 basis points better than the prior-year quarter. Operating margin was 42.7%, 90 basis points better than the prior-year quarter. Net margin was 40.6%, 1,500 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $56.8 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $235.9 million. The average EPS estimate is $1.60.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 43 members out of 53 rating the stock outperform, and 10 members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 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 $33.60.
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