MarketAxess Starts 2022 With Good Results as Bond Market Volatility Returns

Wide-moat-rated MarketAxess reported solid first-quarter earnings as the company benefited from an increase in bond market volatility, particularly in March. Earnings per share of $1.71 were 19% lower than last year’s results but 25% higher than the prior quarter. Similarly, revenue fell 4.8% from the prior-year quarter but grew 12.7% quarter over quarter to $186 million. As we incorporate these results, we are maintaining our $360 fair value estimate for MarketAxess and see the shares as modestly undervalued.