MarketAxess Q4 adjusted EPS beats estimates on block trading growth

Overview

• Electronic trading platform's Q4 revenue missed analyst expectations, adjusted EPS beat estimates

• Company announced $505 mln stock repurchase authorization, including $300 mln ASR agreement

• Significant growth in trading volumes across strategic channels reported

Outlook

• MarketAxess expects 2026 services revenue to grow in mid-single digits

• Company projects 2026 expenses at $530 mln to $545 mln, excluding notable items

• MarketAxess anticipates 2026 capital expenditures of $65 mln to $75 mln

Result Drivers

• BLOCK TRADING GROWTH - 29% increase in block trading ADV, driven by 21% growth in U.S. credit and 41% growth in emerging markets

• PORTFOLIO TRADING EXPANSION - 41% increase in portfolio trading ADV, with record U.S. high-yield and emerging markets volumes

• DEALER-INITIATED CHANNEL - 32% increase in dealer-initiated ADV, including a 185% rise in Mid-X ADV

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the financial & commodity market operators & service providers peer group is "buy"

• Wall Street's median 12-month price target for Marketaxess Holdings Inc is $181.00, about 11.2% above its February 5 closing price of $162.83

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nBw98Mfgqa

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