Trading platform MarketAxess's Q3 revenue misses on lower variable fees
Overview
Electronic fixed-income trading platform's Q3 revenue grew 1% yr/yr, missing analyst expectations
Adjusted EPS for Q3 missed analyst expectations
Company cited strong information services revenue and higher trading volumes, but commission revenue was flat
Outlook
MarketAxess has suspended the practice of issuing guidance and withdrawn its 2026 annual guidance
Company says suspension of guidance is due to pending merger with Intercontinental Exchange
Result Drivers
INFORMATION SERVICES - 10% growth in information services revenue, mainly from net new contract revenue, contributed to overall revenue growth
HIGHER TRADING VOLUMES - Total trading average daily volume rose 13% with growth across credit and rates products, and market share gains in high yield and municipal bonds
LOWER VARIABLE FEES - Decrease in U.S. credit commission revenue due to a 9% drop in variable transaction fee per million, partially offset by higher market volumes and fixed fees
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Miss | $210 mln | $219.51 mln (8 Analysts) |
Q3 Adjusted EPS | Miss | $1.86 | $1.99 (7 Analysts) |
Q3 EPS | $1.53 | ||
Q3 Net Income | $54 mln | ||
Q3 EBITDA | $91 mln | ||
Q3 Operating Income | $74.4 mln | ||
Q3 Operating Margin | 35.4% | ||
Q3 Pretax Profit | $74.83 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the financial & commodity market operators & service providers peer group is "buy."
Wall Street's median 12-month price target for MarketAxess Holdings Inc. is $167.00, about 1.4% above its October 22 closing price of $164.66
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 13 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)