MarketAxess Earnings: Volatile Fixed-Income Markets Drive Record Results and Market Share Gains

Wide-moat-rated MarketAxess reported results that were largely in line with our expectations as strong fixed-income trading volume was offset by weaker average pricing. Revenue increased 9% year over year, or 11% on a constant currency basis, and 14.2% sequentially to $203 million, while earnings per share increased 15% to $1.96. As we incorporate these results, we do not plan to materially alter our $360 fair value estimate for MarketAxess and see the shares as modestly undervalued.