/MarketAxess%20Holdings%20Inc_%20logo%20with%20data%20background%20by-Piotr%20Swat%20via%20Shutterstock.jpg)
MarketAxess Holdings Inc. (MKTX), headquartered in New York, operates an electronic trading platform for institutional investors and broker-dealer companies worldwide. Valued at $8.1 billion by market cap, the company develops technology that delivers price discovery and trade execution services to institutional and broker-dealer clients. The leading electronic trading platform is expected to announce its fiscal second-quarter earnings for 2025 on Tuesday, Aug. 5.
Ahead of the event, analysts expect MKTX to report a profit of $1.94 per share on a diluted basis, up 12.8% from $1.72 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect MKTX to report EPS of $7.51, representing a 3.2% increase from $7.28 in fiscal 2024. Similarly, its EPS is expected to rise 12.5% year over year to $8.45 in fiscal 2026.
MKTX stock has underperformed the S&P 500 Index’s ($SPX) 10.9% gains over the past 52 weeks, with shares down 2.3% during this period. Similarly, it underperformed the Financial Select Sector SPDR Fund’s (XLF) 20.1% gains over the same time frame.
MKTX’s underperformance is primarily due to higher expenses and a decrease in credit variable commission revenues. Additionally, the decline in credit variable transaction fees was also a contributing factor, partially influenced by fluctuations in foreign currencies.
On May 7, MKTX shares closed down marginally after reporting its Q1 results. Its adjusted EPS of $1.87 exceeded Wall Street's expectations of $1.82. The company’s revenue was $208.6 million, falling short of Wall Street forecasts of $210.6 million.
Analysts’ consensus opinion on MKTX stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 14 analysts covering the stock, four advise a “Strong Buy” rating, one suggests a “Moderate Buy,” eight give a “Hold,” and one recommends a “Moderate Sell.” MKTX’s average analyst price target is $235.08, indicating a potential upside of 9.6% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
