MarketAxess Q2 revenue slightly beats estimates; to be acquired by Intercontinental Exchange

Overview

• US electronic trading platform's Q2 revenue was flat yr/yr, slightly beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company reported record services revenue and 9% revenue growth outside U.S. credit

• Co has entered into a definitive merger agreement to be acquired by Intercontinental Exchange, Inc.

Outlook

• MarketAxess is withdrawing its previously announced 2026 annual guidance and medium-term targets

• Company is suspending its practice of issuing monthly volumes press releases

• MarketAxess is suspending its practice of issuing guidance due to announced acquisition by ICE

Result Drivers

• U.S. CREDIT WEAKNESS - Commission revenue fell 3%, mainly due to a 9% decline in U.S. credit, attributed to lower market volatility and changes in product mix

• EMERGING MARKETS SERVICES GROWTH - Growth in emerging markets commission revenue (+6%) and record services revenue (+14%) helped offset declines in U.S. credit

• BLOCK PORTFOLIO TRADING - Strong growth in block trading ADV (+11%) and portfolio trading ADV (+33%) supported results, especially in emerging markets and U.S. credit

Company press release: ID:nBw5DWQHca

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the financial commodity market operators service providers peer group is "buy."

• Wall Street's median 12-month price target for Marketaxess Holdings Inc is $131.00, about 4.2% above its July 29 closing price of $125.73

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 20 three months ago

Reuters Recommended Reads

• July 30 - Intercontinental Exchange to buy MarketAxess in $5.7 billion deal

• July 30 - Tradeweb Q2 revenue rises but slightly misses estimates

• July 30 - Virtu Financial Q2 revenue beats on market making segment growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)