MarketAxess Holdings Inc. MKTX reported first-quarter 2015 earnings of a record 65 cents per share outperforming the Zacks Consensus Estimate by 1.6% and improving 41% year over year.
Bottom-line growth was primarily driven by an increasing market share as well as record volumes across its core products.
Operational Update
MarketAxess’ total revenue grossed to a record $76.8 million in the reported quarter and was almost in line with the Zacks Consensus Estimate. The top line improved 21.1% year over year on higher commission revenues (up 28.9% year over year).
Total expenses at MarketAxess rose 7.2% to $38.3 million during the reported quarter. The increase was mainly attributable to an increase in employee compensation and benefits costs.
The company reported pre-tax income of $38.5 million in the first quarter, up 39% year over year.
Pre-tax margin increased 650 basis points year over year to 43.7%.
Total trading volume of MarketAxess increased 30% from the prior-year quarter to $243.7 billion.
Financial Update
As of Mar 31, 2015, MarketAxess had total assets of $378.7 million, down from $379.9 million as of Dec 31, 2014.
Total cash and cash equivalents as of Mar 31, 2015 were $161 million, decreasing from $168.9 million at the end of 2014.
As of Mar 31, 2015, MarketAxess had total stockholders’ equity of $344.7 million, higher than $334.2 million at year-end 2014.
Dividend Update
MarketAxess’ board of directors declared a quarterly cash dividend of 20 cents per share, which will be paid on May 21 to stockholders as of May 7, 2015.
Share Repurchase Update
Under MarketAxess’ current $100.0 million share repurchase program, the company bought back 0.12 million shares worth $8.9 million in the reported quarter. As of Mar 31, 2015, $53.1 million remained under its authorization.
Zacks Rank
MarketAxess sports a Zacks Rank #1 (Strong Buy).
Other Stocks to Consider
Investors interested in financial sector can also consider AllianceBernstein Holding L.P. AB, Brookfield Asset Management Inc. BAM and Calamos Asset Management Inc. CLMS. All three have the same Zacks Rank as MarketAxess.
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