MarketAxess Holdings Inc.
) reported its third-quarter 2013 operating net income of 44
cents per share, surpassing the Zacks Consensus Estimate by 9.1%.
The results also surged 29.7% from the year-ago quarter.
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Bottom-line growth was primarily driven by a sturdy top-line
MarketAxess' total revenues grossed $61.1 million and were in
line with the Zacks Consensus Estimate. The figure outpaced the
prior-year quarter by 31.7%. Top-line improvement stemmed from
higher commission revenues (up 22.3% year over year) as well as
higher information and post-trade service revenues.
The significant surge in revenues from information and post-trade
services was primarily driven by the Xtrakter acquisition.
Total expenses of MarketAxess rose 39.5% during the reported
quarter. The increase was attributable to operating expenses
associated with the Xtrakter purchase as well as higher variable
incentive compensation, technology consulting costs and employee
The company reported pretax income of $26.4 million for the third
quarter, up 22.7% year over year.
Pre-tax margin of MarketAxess contracted 310 basis points year
over year to 43.2%.
Total Trading volume of MarketAxess increased 26.6% from the
prior-year quarter to $174.4 billion.
MarketAxess exited the third quarter of 2013 with total assets of
$332.7 million, increasing 18.9% from the 2012 year end-level.
Total cash and cash equivalents of $119 million as of Sep 30,
2013 declined 7.7% from the 2012 year end-level.
At the end of the reported quarter, MarketAxess had total
stockholder's equity of $286.6 million, up 18.1% from the end of
The board of directors of MarketAxess approved a quarterly cash
dividend of 13 cents per share which will be paid on Nov 21 to
the stockholders of record as on Nov 7, 2013.
MarketAxess expects its full year-2013 expense from continuing
operations to lie in the range of $130-$133 million, accounting
for the Greenline divestiture and related discontinued
operations. The full-year effective tax rate guidance range is
also updated to 36-37%.
On Oct 8, MarketAxess divested Greenline Financial Technologies
Inc., a fully owned subsidiary, to CameronTec Intressenter AB for
Performances by Other Companies
Nasdaq OMX Group Inc.
) reported third-quarter 2013 operating earnings per share of 66
cents. The results beat the Zacks Consensus Estimate as well as
the year-ago earnings figure by 4 cents.
Among others in the finance space,
Euronet Worldwide Inc.
) reported third-quarter operating net income of 51 cents per
share, surpassing the Zacks Consensus Estimate by 6.3% and the
year-ago results by 31.6%.
American Express Company
), with a Zacks Rank #2 (Buy) reported its third-quarter net
earnings per share of $1.25, beating the Zacks Consensus Estimate
MarketAxess presently carries a Zacks Rank #2 (Buy).