On Jun 23, 2015, shares of MarketAxess Holdings Inc. MKTX scaled a new 52-week high of $96.41 on the back of its strong growth strategies and impressive first-quarter 2015 earnings.
MarketAxess’ one-year return of 72.90% is significantly higher than that other industry players like CBOE Holdings, Inc. CBOE and Intercontinental Exchange, Inc. ICE that recorded returns of 18.44% and 17.96%, respectively.
MarketAxess has been enhancing its operating leverage through various organic and inorganic growth initiatives. The company has been strengthening its trading platform through a series of new MarketAxess Open Trading solutions protocols.
Alongside, the expansion of the Open Trading strategic alliance in association with BlackRock Inc. BLK into the European credit markets in Jan 2015 is expected to help in improving liquidity and reduce transaction expenses. The strategic acquisitions and alliances have also been boosting the information and post-trade services revenues.
In Apr 2015, MarketAxess reported first-quarter earnings that surpassed the Zacks Consensus Estimate and also improved year over year. The bottom-line growth came on the back of high volumes across the company’s core products. Notably, the company delivered positive earnings surprises in three of the last four quarters with an average beat of 2.84%.
Higher commission revenues boosted the top line. Although expenses increased during the quarter, a higher-than-expected increase in revenues made way for margin expansion.
MarketAxess currently carries a Zacks Rank #2 (Buy).
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