The 10-second takeaway
For the quarter ended March 31 (Q1), MarketAxess Holdings beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Gross margins grew, operating margins dropped, net margins increased.
MarketAxess Holdings logged revenue of $55.6 million. The four analysts polled by S&P Capital IQ foresaw revenue of $54.6 million on the same basis. GAAP reported sales were 9.5% higher than the prior-year quarter's $50.7 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 $0.43. The five earnings estimates compiled by S&P Capital IQ anticipated $0.37 per share. Non-GAAP EPS of $0.43 for Q1 were 23% higher than the prior-year quarter's $0.35 per share. GAAP EPS of $0.41 for Q1 were 17% higher than the prior-year quarter's $0.35 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 94.3%, much better than the prior-year quarter. Operating margin was 43.8%, 100 basis points worse than the prior-year quarter. Net margin was 27.6%, 100 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $58.5 million. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $226.0 million. The average EPS estimate is $1.58.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 48 members out of 60 rating the stock outperform, and 12 members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 11 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 $34.80.
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