MarketAxess Holdings Inc. Just Recorded A 9.5% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in MarketAxess Holdings Inc. (NASDAQ:MKTX) had a good week, as its shares rose 6.3% to close at US$169 following the release of its third-quarter results. The result was positive overall - although revenues of US$209m were in line with what the analysts predicted, MarketAxess Holdings surprised by delivering a statutory profit of US$1.84 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the consensus forecast from MarketAxess Holdings' twelve analysts is for revenues of US$922.5m in 2026. This reflects a solid 9.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 38% to US$8.15. Before this earnings report, the analysts had been forecasting revenues of US$922.9m and earnings per share (EPS) of US$8.05 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for MarketAxess Holdings

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$204. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values MarketAxess Holdings at US$260 per share, while the most bearish prices it at US$176. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await MarketAxess Holdings shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting MarketAxess Holdings' growth to accelerate, with the forecast 7.9% annualised growth to the end of 2026 ranking favourably alongside historical growth of 4.5% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that MarketAxess Holdings is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for MarketAxess Holdings going out to 2027, and you can see them free on our platform here..

Even so, be aware that MarketAxess Holdings is showing 1 warning sign in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.