Future

Pragma

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<p class="has-drop-cap">MarketAxess Holdings Inc. (NASDAQ: MKTX), a leader in the electronic trading platform sector for fixed-income securities, reported a <a aria-label="robust financial performance for the third quarter of 2024 (opens in a new tab)" href="https://investor.marketaxess.com/news/news-details/2024/MarketAxess-Reports-Third-Quarter-2024-Financial-Results/default.aspx" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">robust financial performance for the third quarter of 2024</a>. The company achieved a 20% increase in total revenues, reaching $206.7 million.</p>
<p>This growth was driven by a significant rise in total credit average daily volume (ADV) amidst higher market volumes. Notably, the U.S. high-grade commission revenue surged by 24%, reflecting strong market activity, while emerging markets and Eurobonds commission revenue also saw a 20% increase, demonstrating the company’s geographic diversification efforts.</p>
<p>The quarter was marked by record achievements in several areas. MarketAxess recorded a portfolio trading ADV of $1.1 billion, and municipal bonds ADV reached new heights, contributing to an estimated market share increase. The company’s services revenue, which combines information, post-trade, and technology services, rose by 21% to $26.3 million. This includes $2.8 million from Pragma revenue. Total expenses grew by 14% to $119.7 million, incorporating Pragma operating expenses and the impact of foreign currency fluctuations.</p>
<p>The company’s net income for the quarter was $71.5 million, leading to a 30% increase in <a href="https://tokenist.com/investing/how-to-value-a-stock/" rel="noopener noreferrer nofollow" class="deco-link">diluted earnings per share (EPS)</a>, which stood at $1.90. This reflects an improvement in the net income margin to 34.6%. The EBITDA margin also increased to 50.8%, highlighting the company’s operational efficiency. MarketAxess ended the quarter with a strong market backdrop, characterized by robust market volumes and a constructive trading environment.</p>
<h3 id="marketaxess-reports-eps-beat-in-the-third-quarter-revenue-in-line">MarketAxess Reports EPS Beat in the Third Quarter, Revenue in Line</h3>
<p>MarketAxess’s third-quarter performance surpassed market expectations in terms of EPS and revenue. Analysts had anticipated an EPS of $1.82, but the company delivered a higher EPS of $1.90, marking a 30% increase from the prior year. This performance highlights the company’s ability to leverage market conditions and execute its strategic initiatives effectively.</p>
<p>Revenue expectations were set at $206.9 million, and MarketAxess reported slightly below this with $206.7 million. Despite this minor shortfall, the 20% year-over-year revenue growth is commendable, driven by strong credit trading volumes and increased commission revenues. The company’s strategic initiatives, such as the roll-out of X-Pro and enhancements in dealer liquidity solutions, have contributed to this growth.</p>
<p>The company’s ability to exceed EPS expectations while nearly meeting revenue projections indicates effective cost management and operational efficiencies. The increase in total expenses was well-managed, allowing the company to capitalize on higher market volumes and achieve record trading metrics. The results underscore MarketAxess’s strong position in the fixed-income electronic trading industry.</p>
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<h3 id="marketaxess-guidance-and-future-outlook">MarketAxess Guidance and Future Outlook</h3>
<p>Looking ahead, MarketAxess is poised for continued growth, supported by a favorable market environment and strategic initiatives. The company is focused on expanding its market share in U.S. credit portfolio trading, with a record 74% of its portfolio trading volume executed on X-Pro in September. The launch of targeted block trading solutions is expected to further enhance trading success and minimize market impact.</p>
<p>The company’s guidance suggests a continuation of strong performance, with expectations of building on the gains achieved in the third quarter. MarketAxess’s strategy includes extending its suite of automation services to dealer clients, which is anticipated to enhance liquidity solutions and drive future growth. The constructive market backdrop, characterized by strong market volumes and an increase in the velocity of trading in U.S. high-grade, supports the company’s positive outlook.</p>
<p>MarketAxess’s financial health remains robust, with $602.5 million in cash, cash equivalents, and investments as of September 30, 2024. The company has also declared a <a href="https://tokenist.com/investing/stocks-that-pay-dividends/" rel="noopener noreferrer nofollow" class="deco-link">quarterly cash dividend</a> of $0.74 per share, reflecting confidence in its financial position and future prospects.</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em></p>
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<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/marketaxess-holdings-inc-reports-third-quarter-eps-beat-revenue-in-line/">MarketAxess Holdings Inc. Reports Third Quarter EPS Beat, Revenue in Line</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

MarketAxess Holdings Inc. Reports Third Quarter EPS Beat, Revenue in Line

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