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MarketAxess (MKTX) Q2 Earnings Beat on Solid Trading Volume

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 Holdings, Inc. Price, Consensus and EPS Surprise | MarketAxess Holdings, Inc. Quote

Operational Update

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.

Financial Update

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%.

Zacks Rank

MarketAxess currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Performance of Other Players

Among other securities exchanges, Nasdaq Inc NDAQ beat estimates in the second quarter. While CME Group Inc. CME will report results on Aug 1, Intercontinental Exchange Inc. ICE will report on Aug 3.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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