MarketAxess Holdings (NAS: MKTX) reported earnings on Feb. 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MarketAxess Holdings met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved significantly.
Margins improved across the board.
MarketAxess Holdings logged revenue of $45.1 million. The four analysts polled by S&P Capital IQ looked for a top line of $45.0 million. Sales were 17% higher than the prior-year quarter's $38.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.31. The four earnings estimates compiled by S&P Capital IQ predicted $0.30 per share on the same basis. GAAP EPS of $0.29 for Q4 were 26% higher than the prior-year quarter's $0.23 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 63.2%, 640 basis points better than the prior-year quarter. Operating margin was 41.8%, 1,190 basis points better than the prior-year quarter. Net margin was 25.6%, 240 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $49.4 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $201.0 million. The average EPS estimate is $1.36.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 42 members out of 51 rating the stock outperform, and nine members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give MarketAxess Holdings a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MarketAxess Holdings is outperform, with an average price target of $31.80.
Over the decades, small-cap stocks like MarketAxess Holdings have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
Add MarketAxess Holdings to My Watchlist.
At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.