MarketAxess Holdings Inc . MKTX second-quarter 2017 earnings per share of $1.10 beat the Zacks Consensus Estimate of 92 cents on higher trading volumes. Also, bottom line improved 13.6% from the year-ago quarter.
MarketAxess Holdings, Inc. Price, Consensus and EPS Surprise
MarketAxess posted total revenue of $97 million, meeting the Zacks Consensus Estimate. Revenues inched up 0.7% year over year.
The top-line improvement can be primarily attributed to 6.3% growth in investment income. Commission revenues increased 0.9% while information and post-trade services decreased 3.5% and other revenues declined 7.7% year over year.
Total trading volume increased 6.9% in the reported quarter to $361.5 billion year over year, driven by record trading volume in each of its four core products - U.S. high-grade, high-yield, Eurobonds and emerging market bonds, respectively.
Total expense of MarketAxess increased 3.6% year over year to $47.4 million. This rise was due to higher marketing and advertising costs, plus general and administrative expenses.
Total assets were $547 million as of Jun 30, 2017, up 3.4% from the year-end 2016.
Total cash and cash equivalents of $128.1 million, as of Jun 30, 2017, plunged 23.8% year over year. Total stockholder's equity was $501 million, up 7.1% from the end of last year.
Free cash flow totaled $32.3 million, up 18.2% year over year.
Share Repurchase Update
MarketAxess repurchased 0.07 million shares for $12.4 million.
The board of directors of MarketAxess approved of a quarterly dividend of 33 cents payable on Aug 24, 2017 to stockholders of record on Aug 10, 2017.
Guidance for 2017
MarketAxess affirmed its guidance. It projects total expenses between $192.0 million and $208.0 million, capital spending between $25.0 million and $30.0 million and an overall effective tax rate between 26% and 28%.
MarketAxess currently carries a Zacks Rank #4 (Sell).
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