MKTX Earnings Prediction
The chart below shows how MKTX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MKTX sees a +2.70% change in stock price 10 days leading up to the earnings, and a -0.79% change 10 days following the report. On the earnings day itself, the stock moves by -1.76%. This data can give you a slight idea of what to expect for the next quarter's release.
MKTX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
197.96M
2.76%
-2.16%
Gross Margin
--
--
--
Operating Margin
40.40%
1.03%
-6.11%
Net Margin
32.90%
-8.97%
-6.88%
EPS
1.73
-5.98%
-8.95%
No Data Available
MKTX Earnings Analysis
Marketaxess Holdings Inc Corporation (MKTX.O) Earnings Conference Call
Positive
Record Revenue Growth: MarketAxess reported a 9% growth in revenue for 2024, marking the strongest annual revenue growth rate since 2020, driven by record commission and services revenue.
Record Commission Revenue: Commission revenue reached a record $712 million in 2024, with significant contributions from emerging markets (up 18%), Eurobonds (up 10%), and municipals (up 6%).
Client Engagement Surge: Trading ADV in the client-focused rates pool surged from $2.9 billion per day in Q1 2024 to $11.4 billion in Q4 2024, reflecting a strong increase in client engagement with rates algos.
Emerging Markets Trading Growth: Portfolio trading ADV increased by 175% in emerging markets for the full year 2024 compared to 2023, demonstrating significant growth in this segment.
Free Cash Flow Increase: MarketAxess generated $328 million in free cash flow over the trailing 12 months, an increase of 6% over the previous quarter, while maintaining a strong balance sheet with $699 million in cash and equivalents.
Negative
Commission Revenue Comparison: Total commission revenue was $175 million compared to $172 million in the prior year, with a 19% decline in U.S. high yield and lower levels of credit spread volatility.
Operating Expenses Increase: Fourth quarter operating expenses of $122 million increased 2% compared to the prior year, driven by higher employee compensation and benefits, tech and communications, and marketing costs.
Other Income Decline: Total other income decreased approximately $2 million due principally to mark-to-market losses on the U.S. treasury portfolio in the current quarter of approximately $2 million versus a gain of $1 million in the prior year period.
Expense Growth Projection: For the full year 2025, total expenses are expected to be in the range of $505 million to $525 million, implying an 8% growth rate from the previous year.
Effective Tax Rate Increase: The effective tax rate is expected to be in the range of 23.5% to 24.5%, indicating a slight increase from the previous year's rate of 23%.
MKTX FAQs
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MKTX Earning Call Sentiment
MarketAxess Holdings Inc. (NASDAQ:MKTX) Q4 2024 Earnings Call Transcript
MKTX.O
-1.42%Positive
The earnings call summary shows mixed signals: moderate revenue growth and EPS increase, but challenges in U.S. credit market share and rising expenses. The strategic partnership with S&P Global is a positive, yet regulatory and competitive pressures pose risks. The Q&A reveals cautious optimism but lacks clarity on financial impacts. Share repurchases are a positive, but overall, the sentiment is balanced between positives and challenges, leading to a neutral outlook.
