MarketAxess (MKTX) Q1 Trading Volume, Eurobonds ADV Jump


MarketAxess Holdings Inc. MKTX recently announced that it recorded a total credit average daily trading volume (“ADV”) of almost $15 billion in the first quarter of 2024, which increased 9.2% year over year. This was supported by an 18% jump in U.S. high-grade ADV, a 17.3% gain in emerging markets ADV, along with 10.6% growth in Eurobonds ADV.

The company continues to gain from its solid Eurobonds performance. MKTX witnessed a 24% jump in Eurobonds ADV in March alone. However, U.S. high-yield trading activity declined on the platform due to decreased credit spread volatility levels. It dropped 29% year over year in the first quarter. Its estimated market share fell 540 basis points year over year. Nevertheless, U.S. high-yield new issuance surged 116.5% from the year-ago period to $87.6 billion.

The company witnessed growing levels of ADV generated from Latin America and Asia-Pacific clients. This highlights MKTX’s expanding footprint in the international scenario. Its order and execution workflow solution, AxessIQ, reached $140.1 million ADV, increasing 22.2% year over year. It encountered growing client engagement in X-Pro. Around 12.5% of U.S. credit trading volume was executed on the trading interface in the first quarter.

Due to the product mix shift, its first quarter FPM for total credit was around $154, down 6.7% from the year-ago period. However, total portfolio trading volume increased 40.6% year-over-year in the first quarter to $44.2 billion. Higher trading volumes and continued solid Eurobonds’ performance will likely buoy MKTX’s first-quarter results.

The Zacks Consensus Estimate for MarketAxess’ first-quarter earnings is pegged at $1.84 per share, which remained stable for the past week. The company beat the earnings estimates in three of the past four quarters and missed once, with an average surprise of 3%. The consensus mark for revenues is pegged at $210.7 million, which predicts a 3.7% year-over-year growth.

MarketAxess Holdings Inc. Price and EPS Surprise

MarketAxess Holdings Inc. Price and EPS SurpriseMarketAxess Holdings Inc. Price and EPS Surprise

MarketAxess Holdings Inc. Price and EPS Surprise

MarketAxess Holdings Inc. price-eps-surprise | MarketAxess Holdings Inc. Quote

Zacks Rank & Key Picks

MarketAxess currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Finance space are Coinbase Global, Inc. COIN, Burford Capital Limited BUR and Axos Financial, Inc. AX. While Coinbase Global and Burford Capital sport a Zacks Rank #1 (Strong Buy) each at present, Axos Financial carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Coinbase’s current-year earnings implies a 354.1% year-over-year surge. It has witnessed three upward estimate revisions against none in the opposite direction during the past month. COIN beat earnings estimates in each of the past four quarters, with an average surprise of 377.6%.

The Zacks Consensus Estimate for Burford Capital’s 2024 full-year earnings is pegged at $2.04 per share, which increased by 2 cents in the past month. It beat earnings estimates twice in the past four quarters and missed on the other occasions, with an average surprise of 113.4%. The consensus mark for BUR’s revenues in full-year 2024 is pegged at $882 million.

The consensus mark for Axos Financial’s current-year earnings is pegged at $7.23 per share, which indicates 42.6% year-over-year growth. AX beat earnings estimates in each of the past four quarters, with an average surprise of 12.3%. The consensus mark for its current-year revenues is pegged at $1.1 billion, up 22.4% from a year ago.

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