Favorable Conditions and Market Share Gains Drive Strong Fourth-Quarter Results for MarketAxess

Wide-moat-rated MarketAxess reported solid fourth-quarter results as it benefited from more corporate bond trading volume industrywide and higher market share, with gains partially offset by lower average fees. Net revenue increased 8% from last year, or 10% on a constant-currency basis, and 3% from last quarter to $179 million. The company benefited from strong cost management and more leverage against its fixed costs, with EBITDA rising 10% from the prior-year quarter to $95.2 million. As we incorporate these results, we do not plan to materially alter our $355 fair value estimate. We see the shares as roughly fairly valued.