Trading platform MarketAxess's Q3 revenue misses on lower variable fees

MarketAxess Holdings

Today 11:40

Overview
Electronic fixed-income trading platform's Q3 revenue grew 1% yr/yr, missing analyst expectations
Adjusted EPS for Q3 missed analyst expectations
Company cited strong information services revenue and higher trading volumes, but commission revenue was flat

Outlook
MarketAxess has suspended the practice of issuing guidance and withdrawn its 2026 annual guidance
Company says suspension of guidance is due to pending merger with Intercontinental Exchange

Result Drivers
INFORMATION SERVICES - 10% growth in information services revenue, mainly from net new contract revenue, contributed to overall revenue growth
HIGHER TRADING VOLUMES - Total trading average daily volume rose 13% with growth across credit and rates products, and market share gains in high yield and municipal bonds
LOWER VARIABLE FEES - Decrease in U.S. credit commission revenue due to a 9% drop in variable transaction fee per million, partially offset by higher market volumes and fixed fees

Company press release: ID:nBw6cg9V1a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$210 mln
$219.51 mln (8 Analysts)
Q3 Adjusted EPS
Miss
$1.86
$1.99 (7 Analysts)
Q3 EPS
 
$1.53
 
Q3 Net Income
 
$54 mln
 
Q3 EBITDA
 
$91 mln
 
Q3 Operating Income
 
$74.4 mln
 
Q3 Operating Margin
 
35.4%
 
Q3 Pretax Profit
 
$74.83 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 10 "hold" and no "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 $167.00, about 1.4% above its October 22 closing price of $164.66
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 13 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)