MarketAxess Holdings Inc. (NASDAQ:MKTX) Just Released Its Second-Quarter Results And Analysts Are Updating Their Estimates

It's been a good week for MarketAxess Holdings Inc. (NASDAQ:MKTX) shareholders, because the company has just released its latest second-quarter results, and the shares gained 2.6% to US$229. The result was positive overall - although revenues of US$198m were in line with what the analysts predicted, MarketAxess Holdings surprised by delivering a statutory profit of US$1.72 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for MarketAxess Holdings

After the latest results, the 13 analysts covering MarketAxess Holdings are now predicting revenues of US$804.8m in 2024. If met, this would reflect an okay 3.5% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$7.02, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$809.3m and earnings per share (EPS) of US$6.96 in 2024. 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.

The analysts reconfirmed their price target of US$244, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic MarketAxess Holdings analyst has a price target of US$310 per share, while the most pessimistic values it at US$193. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 7.1% growth on an annualised basis. That is in line with its 7.7% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.3% annually. So it's pretty clear that MarketAxess Holdings is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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 in mind, we wouldn't be too quick to come to a conclusion on MarketAxess Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple MarketAxess Holdings analysts - going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.