MarketAxess Holdings Inc. (NASDAQ:MKTX) shares were up 3.26% on Tuesday when approximately 504,157.00 shares were traded, against the average daily trading volume of 252,446.00. Analysts at Credit Agricole recently upgraded the stock to Underperform from Buy. MarketAxess Holdings Inc. (NASDAQ:MKTX) has a consensus Hold rating, according to Zacks Investment Research. 1 analyst has rated the stock with a sell rating, 1 has assigned a hold rating, 1 says it’s a buy, and 0 have assigned a strong buy rating to the company.
The 52-week price range is $101.52-$182.86 and the company has a market capitalization of $7.04 billion.
MarketAxess Holdings Inc. (MKTX) on January 25, 2017 announced results for the fourth quarter and full year ended December 31, 2016.
“Our fourth quarter and full year 2016 results show accelerating revenue and earnings growth, driven by broad based market share gains in all of our core credit products. Clients have responded favorably to the expansion of liquidity solutions, trading protocols and data available on the MarketAxess trading system,” said Richard M. McVey, Chairman and CEO of MarketAxess. “The growth in our network is delivering more trading opportunities and lower transaction costs for credit market participants.”
Fourth Quarter Results
Total revenues for the fourth quarter of 2016 increased 23.2% to $94.4 million, compared to $76.6 million for the fourth quarter of 2015. Pre-tax income was $50.3 million, compared to $37.0 million for the fourth quarter of 2015, an increase of 36.1%. Pre-tax margin was a record 53.3%, compared to 48.3% for the fourth quarter of 2015. Net income totaled $33.2 million, or $0.88 per share on a diluted basis, compared to $24.5 million, or $0.65 per share, for the fourth quarter of 2015.
Commission revenue for the fourth quarter of 2016 increased 26.5% to $85.5 million, compared to $67.6 million for the fourth quarter of 2015. The growth in commission revenue was principally due to growth in variable transaction fees, which increased 36.4% to $70.0 million on total trading volume of $338.3 billion for the fourth quarter of 2016, compared to variable transaction fees of $51.3 million on total trading volume of $250.4 billion for the fourth quarter of 2015. U.S. high-grade trading volume as a percentage of FINRA’s high-grade TRACE trading volume increased to an estimated 17.2% for the fourth quarter of 2016, compared to an estimated 15.1% on an adjusted basis for the fourth quarter of 2015. See Non-GAAP Financial Measures and Other Items below.
Fourth Quarter Financial Highlights
- Revenues of $94.4 million, up 23.2%
- Pre-tax income of $50.3 million, up 36.1%
- Diluted EPS of $0.88, up 35.4% from $0.65
- Total trading volume of $338.3 billion, up 35.1%
- Record estimated U.S. high-grade market share of 17.2%, up from 15.1%
- All comparisons versus fourth quarter 2015.
Full Year 2016 Financial Highlights
- Record revenues of $369.9 million, up 22.0%
- Record commission revenue of $332.3 million, up 24.8%
- Expenses of $178.3 million, up 14.9%
- Record pre-tax income of $191.6 million, up 29.5%
- Record diluted EPS of $3.34, up 31.0% from $2.55
- Record total trading volume of $1.3 trillion, up 33.7%
- Record estimated U.S. high-grade market share of 16.0%, up from 14.6%.