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Will Strong Commissions Aid MarketAxess' (MKTX) Q2 Earnings?
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MarketAxess Holdings Inc. (MKTX - Free Report) is slated to report second-quarter 2024 results on Aug 6, 2024, before the opening bell.
The Zacks Consensus Estimate for MarketAxess’ second-quarter earnings per share is pegged at $1.69, which indicates growth of 3.7% from the prior-year quarter’s reported figure. The estimate decreased 7 cents in the past 30 days. The consensus mark for revenues is pegged at $198.3 million, indicating 10.2% growth from the year-ago quarter’s reported number.
MarketAxess boasts a solid earnings surprise history. Its bottom line beat estimates in three of the trailing four quarters, missing once, the average surprise being 3%. This is depicted in the figure below:
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for MarketAxess this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Earnings ESP: MarketAxess has an Earnings ESP of -0.21% as the Most Accurate Estimate of $1.68 per share is currently pegged lower than the Zacks Consensus Estimate of $1.69. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: MKTX currently carries a Zacks Rank of 3.
Now, let’s see how things have shaped up prior to the second-quarter 2024 earnings announcement.
Factors to Note
Higher trading volumes and strong estimated market share gains across most of its credit product lines are likely to have boosted credit commission revenues in the second quarter. However, the upside is likely to have been partly offset by continued low volatility in the high-yield market. The Zacks Consensus Estimate for the total credit trading volume indicates a 5.8% year-over-year increase.
Solid trading volumes in the international business of MarketAxess are expected to have driven the company’s overall commissions in the second quarter. The Zacks Consensus Estimate for commissions is pegged at $173 million, indicating 4.8% growth from the prior-year quarter’s reported number.
Increased utilization of its data product suite and new contracts are likely to have provided an impetus to MarketAxess’ information services revenues in the to-be-reported quarter. This, in turn, may have driven overall revenue growth. The consensus mark for second-quarter information services revenues is pinned at $12.6 million, which implies a 7.6% rise from the year-ago quarter’s reported figure.
The overall trading volumes of MarketAxess are expected to have benefited from improved trading volumes in U.S. High-grade, emerging markets, but suffered from lower High-Yield and U.S. Government bond volume. Moreover, a diversified trading product portfolio and increased utilization of its Open Trading platform may have provided some respite. The Zacks Consensus Estimate for second-quarter total trading volume is pegged at 2 million, implying 14.3% growth from the prior-year quarter’s reported figure.
However, MKTX’s margins are likely to have taken a hit from elevated operating expenses, resulting from continuous investments to upgrade trading and data capabilities. Increased headcount is expected to have increased employee compensation and benefits expenses. We forecast total expenses to be $120.5 million in the second quarter, indicating an increase of 5.7% year over year. These factors might make an earnings beat uncertain for MKTX in the second quarter.
Other Stocks With a Favorable Combination
Here are some other companies from the broader Finance space, which also have the right combination of elements to beat on earnings this time around:
The Zacks Consensus Estimate for KMPR’s second-quarter 2024 earnings is pegged at $1.19 per share. A loss of 26 cents per share was incurred in the prior-year quarter.
Kemper’s earnings beat estimates in two of the trailing four quarters, matched the mark once and missed the same on the remaining occasion, the average surprise being 10%.
Palomar Holdings, Inc. (PLMR - Free Report) currently has an Earnings ESP of +1.34% and a Zacks Rank of 3. The Zacks Consensus Estimate for PLMR’s second-quarter earnings is pegged at $1.12 per share, which indicates 30.2% growth from the prior-year quarter's actual.
Palomar’s earnings beat estimates in each of the trailing four quarters, the average surprise being 15.10%.
Brighthouse Financial, Inc. (BHF - Free Report) currently has an Earnings ESP of +1.15% and a Zacks Rank of 3. The Zacks Consensus Estimate for BHF second-quarter earnings is pegged at $4.36 per share, which indicates 5.6% growth from the prior-year quarter's actual.
Brighthouse Financial’s earnings beat estimates in three of the trailing four quarters, missing once, the average surprise being 0.9%.
Image: Bigstock
Will Strong Commissions Aid MarketAxess' (MKTX) Q2 Earnings?
MarketAxess Holdings Inc. (MKTX - Free Report) is slated to report second-quarter 2024 results on Aug 6, 2024, before the opening bell.
The Zacks Consensus Estimate for MarketAxess’ second-quarter earnings per share is pegged at $1.69, which indicates growth of 3.7% from the prior-year quarter’s reported figure. The estimate decreased 7 cents in the past 30 days. The consensus mark for revenues is pegged at $198.3 million, indicating 10.2% growth from the year-ago quarter’s reported number.
MarketAxess boasts a solid earnings surprise history. Its bottom line beat estimates in three of the trailing four quarters, missing once, the average surprise being 3%. This is depicted in the figure below:
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for MarketAxess this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Earnings ESP: MarketAxess has an Earnings ESP of -0.21% as the Most Accurate Estimate of $1.68 per share is currently pegged lower than the Zacks Consensus Estimate of $1.69. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: MKTX currently carries a Zacks Rank of 3.
Now, let’s see how things have shaped up prior to the second-quarter 2024 earnings announcement.
Factors to Note
Higher trading volumes and strong estimated market share gains across most of its credit product lines are likely to have boosted credit commission revenues in the second quarter. However, the upside is likely to have been partly offset by continued low volatility in the high-yield market. The Zacks Consensus Estimate for the total credit trading volume indicates a 5.8% year-over-year increase.
Solid trading volumes in the international business of MarketAxess are expected to have driven the company’s overall commissions in the second quarter. The Zacks Consensus Estimate for commissions is pegged at $173 million, indicating 4.8% growth from the prior-year quarter’s reported number.
Increased utilization of its data product suite and new contracts are likely to have provided an impetus to MarketAxess’ information services revenues in the to-be-reported quarter. This, in turn, may have driven overall revenue growth. The consensus mark for second-quarter information services revenues is pinned at $12.6 million, which implies a 7.6% rise from the year-ago quarter’s reported figure.
The overall trading volumes of MarketAxess are expected to have benefited from improved trading volumes in U.S. High-grade, emerging markets, but suffered from lower High-Yield and U.S. Government bond volume. Moreover, a diversified trading product portfolio and increased utilization of its Open Trading platform may have provided some respite. The Zacks Consensus Estimate for second-quarter total trading volume is pegged at 2 million, implying 14.3% growth from the prior-year quarter’s reported figure.
However, MKTX’s margins are likely to have taken a hit from elevated operating expenses, resulting from continuous investments to upgrade trading and data capabilities. Increased headcount is expected to have increased employee compensation and benefits expenses. We forecast total expenses to be $120.5 million in the second quarter, indicating an increase of 5.7% year over year. These factors might make an earnings beat uncertain for MKTX in the second quarter.
Other Stocks With a Favorable Combination
Here are some other companies from the broader Finance space, which also have the right combination of elements to beat on earnings this time around:
Kemper Corporation (KMPR - Free Report) has an Earnings ESP of +14.77% and currently flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for KMPR’s second-quarter 2024 earnings is pegged at $1.19 per share. A loss of 26 cents per share was incurred in the prior-year quarter.
Kemper’s earnings beat estimates in two of the trailing four quarters, matched the mark once and missed the same on the remaining occasion, the average surprise being 10%.
Palomar Holdings, Inc. (PLMR - Free Report) currently has an Earnings ESP of +1.34% and a Zacks Rank of 3. The Zacks Consensus Estimate for PLMR’s second-quarter earnings is pegged at $1.12 per share, which indicates 30.2% growth from the prior-year quarter's actual.
Palomar’s earnings beat estimates in each of the trailing four quarters, the average surprise being 15.10%.
Brighthouse Financial, Inc. (BHF - Free Report) currently has an Earnings ESP of +1.15% and a Zacks Rank of 3. The Zacks Consensus Estimate for BHF second-quarter earnings is pegged at $4.36 per share, which indicates 5.6% growth from the prior-year quarter's actual.
Brighthouse Financial’s earnings beat estimates in three of the trailing four quarters, missing once, the average surprise being 0.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.