Company Reports

Wide-moat-rated Tradeweb reported strong first-quarter results as growing market share and high trading volume industrywide drove a sharp increase in trading revenue, which increased 24% year over year and 11% sequentially to $408.7 million. Adjusted diluted earnings per share increased 32% from last year to $0.71 as strong revenue growth provided the firm better scale against its fixed costs. While these were excellent results, and we expect strong secular growth to continue for the company, Tradeweb also benefited from interest-rate uncertainty and strong corporate bond issuance, which led to high trading activity industrywide during the quarter. These are temporary factors, so we caution investors not to read too much into the jump in sequential growth. As we incorporate these results, we do not expect to materially alter our $92 per share fair value estimate. We see the shares as modestly overvalued.

Tradeweb operates one of the leading platforms for the electronic trading of fixed-income products and derivatives. Unlike many of its competitors, which tend to focus on a particular bond type or market segment, Tradeweb operates with a broad scope, offering trading in just about anything related to fixed income, including derivatives, as well as some equity exchange-traded funds. That said, Tradeweb’s interest-rate and credit segments are the heart of the company, making up 79% of its revenue in 2023.

Wide-moat-rated Tradeweb reported strong fourth-quarter results as high interest rate volatility drove strong trading volume, particularly for the firm’s interest rate swaps. Net revenue increased 26.3% from last year and 12.8% from last quarter to $370 million. Net income increased only 4.8% from last year to $107.7 million, though last year’s quarter benefited from an unusually low tax provision. Despite the strength, the release was in line with our expectations as Tradeweb reports its trading volume data monthly. As we incorporate these results, we do not plan to materially alter our $88 fair value estimate for Tradeweb.

Tradeweb operates one of the leading platforms for the electronic trading of fixed-income products and derivatives. Unlike many of its competitors, which tend to focus on a particular bond type or market segment, Tradeweb operates with a broad scope, offering trading in just about anything related to fixed income, including derivatives, as well as some equity exchange-traded funds. That said, Tradeweb’s interest-rate and credit segments are the heart of the company, making up 79% of its revenue in 2022.

Wide-moat-rated Tradeweb reported strong third-quarter results, driven by market share gains in interest-rate swaps and a surge in Chinese bond trading on its platform. Net revenue increased 14.5% from last year and 5.7% from last quarter to $328 million. Net income increased 36.9% year over year to $112 million as Tradeweb benefited from good cost management and higher interest rates on its $1.5 billion cash hoard. As we incorporate these results, we do not plan to materially alter our $84 per share fair value estimate for Tradeweb, and we see shares as fairly valued.

Wide-moat-rated Tradeweb Markets reported solid second-quarter results roughly in line with our expectations, as increasing market share in interest-rate swaps and U.S. investment-grade bonds was offset by lower trading volume in mortgage and high-yield bonds. Revenue increased 4.5% year over year but declined 5.7% from a strong first quarter, to $310.6 million. Net income increased 24.9% from last year to $101.9 million, as Tradeweb benefited from higher interest rates on its substantial $1.4 billion cash hoard. As we incorporate these results, we do not plan to materially alter our $84 fair value estimate.

Tradeweb operates one of the leading platforms for the electronic trading of fixed-income products and derivatives. Unlike many of its competitors, which tend to focus on a particular bond type or market segment, Tradeweb operates with a broad scope, offering trading in just about anything related to fixed income, including derivatives, as well as some equity exchange-traded funds. That said, Tradeweb’s interest-rate and credit segments are the heart of the company, making up 79% of its revenue in 2022.

Wide-moat Tradeweb Markets reported decent first-quarter results that were roughly in line with our expectations. Strong interest-rate swaps were a significant bright spot for the firm as interest-rate volatility and issues in the banking sector drove high trading volume, which more than offset less inspiring results from some of the firm's other key trading products.

Tradeweb operates one of the leading platforms for the electronic trading of fixed-income products and derivatives. Unlike many of its competitors, which tend to focus on a particular bond type or market segment, Tradeweb operates with a broad scope, offering trading in just about anything related to fixed income, including derivatives, as well as some equity exchange-traded funds. That said, Tradeweb’s interest-rate and credit segments are the heart of the company, making up 79% of its revenue in 2022, and are responsible for much of its growth.

Tradeweb operates one of the leading platforms for the electronic trading of fixed-income products and derivatives. Unlike many of its competitors, which tend to focus on a particular bond type or market segment, Tradeweb operates with a broad scope, offering trading in just about anything related to fixed income, including derivatives, as well as some equity exchange-traded funds. That said, Tradeweb’s interest-rate and credit segments are the heart of the company, making up 79% of its revenue in 2022, and are responsible for much of its growth.

Wide-moat-rated Tradeweb Markets reported decent earnings that were in line with our expectations, as strength across multiple asset classes was offset by headwinds in its treasury and mortgage bond trading businesses. Revenue increased 5.8% from last year, or 9.3% when adjusted for foreign exchange, to $293 million. Adjusted diluted earnings per share of $0.49 was 16.7% higher than last year, or 21.4% higher on a constant-currency basis. As we incorporate these results, we do not plan to materially alter our $84 fair value estimate.

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.

Tradeweb operates one of the leading platforms for the electronic trading of fixed-income products and derivatives. Unlike many of its competitors, which tend to focus on a particular bond type or market segment, Tradeweb operates with a broad scope, offering trading in just about anything related to fixed income, including derivatives, as well as some equity exchange-traded funds. That said, Tradeweb’s interest-rate and credit segments are the heart of the company, making up 79% of its revenue in 2021, and are responsible for much of its growth.

Wide-moat rated Tradeweb reported solid second-quarter earnings as continued volatility across fixed-income markets led to good trading volume on the company's platform. Revenue rose 13.9% year over year, or 17.8% on a constant currency basis, to $297 million. Adjusted earnings per share of $0.47 was 20.5% higher than last year but slightly lower than the $0.48 reported last quarter. As we incorporate these results, we are maintaining our $87 per share fair value estimate for Tradeweb.

Tradeweb operates one of the leading platforms for the electronic trading of fixed-income products and derivatives. Unlike many of its competitors, which tend to focus on a particular bond type or market segment, Tradeweb operates with a broad scope, offering trading in just about anything related to fixed income, including derivatives, as well as some equity exchange-traded funds. That said, Tradeweb’s interest-rate and credit segments are the heart of the company, making up 77% of its revenue in 2020, and are responsible for much of its growth.

Wide-moat-rated Tradeweb reported decent earnings as the firm benefited from volatile markets driving industrywide trading volume higher, partially offset by a sequential decline in market share in some of Tradeweb’s product lines. Revenue rose 13.9% year over year and 12.5% sequentially to $311.5 million. Earnings per share of $0.40 was 21.2% higher than last year’s quarter. There was nothing in the report to materially alter our thesis for the company, and we are maintaining our $87 fair value estimate for Tradeweb.

Tradeweb operates one of the leading platforms for the electronic trading of fixed-income products and derivatives. Unlike many of its competitors, which tend to focus on a particular bond type or market segment, Tradeweb operates with a broad scope, offering trading in just about anything related to fixed income, including derivatives, as well as some equity exchange-traded funds. That said, Tradeweb’s interest-rate and credit segments are the heart of the company, making up 77% of its revenue in 2020, and are responsible for much of its growth.

Tradeweb operates one of the leading platforms for the electronic trading of fixed-income products and derivatives. Unlike many of its competitors, which tend to focus on a particular bond type or market segment, Tradeweb operates with a broad scope, offering trading in just about anything related to fixed income, including derivatives, as well as some equity exchange-traded funds. That said, Tradeweb’s interest-rate and credit segments are the heart of the company, making up 77% of its revenue in 2020, and are responsible for much of its growth.

Wide-moat Tradeweb ended the year on a strong note, with solid fourth-quarter results supported by good performance from its rates, credit, and equity trading services. Tradeweb reported earnings per share of $0.23, $0.42 on an adjusted basis, and revenue of $277 million, an increase of 18.8% from the year-ago period. These results do not materially change our thesis for the company, though we expect to increase our fair value estimate by mid to high single digits as we are no longer projecting a tax rate increase.

Tradeweb operates one of the leading platforms for the electronic trading of fixed-income products and derivatives. Unlike many of its competitors, which tend to focus on a particular bond type or market segment, Tradeweb operates with a broad scope, offering trading in just about anything related to fixed income, including derivatives, as well as some equity exchange-traded funds. That said, Tradeweb’s interest-rate and credit segments are the heart of the company, making up 77% of its revenue in 2020, and are responsible for much of its growth.