Exchange-Rate Movements Are Headwind to Tradeweb's Otherwise Strong Third Quarter

Wide-moat Tradeweb Markets reported solid third-quarter results that were broadly in line with our expectations as strong trading volume was partially offset by pressure from exchange-rate movements. Revenue increased 8.2% from last year, or 13.2% when adjusted for foreign exchange, and declined 3.4% sequentially to $287.1 million. Adjusted diluted earnings per share of $0.45 came in 15.4% higher than last year, or 20.5% higher on a constant-currency basis. As we incorporate these results, we do not plan to materially alter our $84 fair value estimate.