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Valued at $6.4 billion by market cap, New York-based MarketAxess Holdings Inc. (MKTX) operates an electronic trading platform for institutional investors and broker-dealer companies worldwide. It focuses on expanding liquidity opportunities, improving execution quality, and cost savings across global fixed-income markets.
MarketAxess is set to announce its third-quarter results before the markets open on Friday, Nov. 7. Ahead of the event, analysts expect MKTX to report a non-GAAP profit of $1.70 per share, down 10.5% from $1.90 per share reported in the year-ago quarter. On a positive note, the company has surpassed Wall Street’s bottom-line estimates in each of the past four quarters.
For the full fiscal 2025, MKTX is expected to report an adjusted EPS of $7.27, marginally down from $7.28 in fiscal 2024. While in fiscal 2026, its earnings are expected to surge 9.9% year-over-year to $7.99 per share.
MKTX stock prices have tanked 40.8% over the past 52 weeks, significantly underperforming the Financial Select Sector SPDR Fund’s (XLF) 10.9% gains and the S&P 500 Index’s ($SPX) 14.8% returns during the same time frame.
MarketAxess Holdings’ stock prices plunged 10.1% in the trading session following the release of its Q2 results on Aug. 6. The company reported a solid 12% surge in commissions revenues to a record $191.8 million and 7% increase in services revenues to a record $27.7 million. Overall, its revenues grew 10.9% year-over-year to $219.5 million, beating the Street’s expectations by 59 bps. Further, its adjusted EPS soared 16.3% year-over-year to $2, beating the consensus estimates by 3.1%. However, the company’s statutory EPS remained below expectations, which impacted investor sentiment.
Analysts remain cautiously optimistic about the stock’s prospects. MKTX stock prices have a consensus “Moderate Buy” rating overall. Of the 16 analysts covering the stock, opinions include five “Strong Buys,” one “Moderate Buy,” nine “Holds,” and one “Moderate Sell.” Its mean price target of $203 suggests an 18.8% upside potential from current price levels.
