MarketAxess Holdings (MKTX) Tops Q4 EPS by 2c, Offers Outlook

MarketAxess Holdings (NASDAQ: MKTX) reported Q4 EPS of $1.32, $0.02 better than the analyst estimate of $1.30. Revenue for the quarter came in at $129.8 million versus the consensus estimate of $127.08 million.

Guidance for 2020:

For 2020, the Company is providing the following guidance:

Expenses are expected to be in the range of $297.0 million to $314.0 million and includes a full year of LiquidityEdge expenses estimated to range between $18.0 million to $22.0 million. LiquidityEdge expenses are expected to include amortization expense on acquired intangible assets of $2.8 million and variable clearing and technology expenses that will be approximately 50% of trading revenue. Excluding LiquidityEdge expenses, the midpoint in the guidance range would represent an approximate 11% year-over-year increase in expenses.

Capital expenditures are expected to be in the range of $44.0 million to $49.0 million and includes an expected increase in capitalized software development and approximately $7.0 million of buildout costs for additional office space in London.

The Company’s overall effective tax rate is expected to be between 20.0% to 22.0% and includes the estimated impact of excess tax benefits on share-based compensation awards.

For earnings history and earnings-related data on MarketAxess Holdings (MKTX) click here.

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