Business
Marketaxess Reports Third Quarter 2020 Revenues of $164.0 Million, Operating Income of $87.8 Million and Diluted EPS of $1.78
Third Quarter Financial Highlights* Revenues of $164.0 million, up 25%Operating income of $87.8 million, up 33%Operating margin of 53.5%, up from 50.1%Net
About this update from Marketaxess Holdings, Inc.
[{"type":"text","content":"Third Quarter Financial Highlights*\n Revenues of $164.0 million, up 25%Operating income of $87.8 million, up 33%Operating margin of 53.5%, up from 50.1%Net income of $67.8 million, up 26%Diluted EPS of $1.78, up 25% from $1.42Record Estimated U.S. high-grade market share of 22.2%, up from 20.2%Record Estimated U.S. high-yield market share of 16.0%, up from 11.9% *All comparisons versus third quarter 2019. NEW YORK, Oct. 27, 2020 (GLOBE NEWSWIRE) -- MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, and the provider of market data and post-trade services for the global fixed-income markets, today announced results for the quarter ended September 30, 2020. “It is gratifying to see the strength in market share trends and Open Trading volumes in spite of the return to more normal credit market conditions in the third quarter,” said Rick McVey, Chairman and CEO of MarketAxess. “Trading automation and lower transaction costs on MarketAxess are driving a sustainable change in trading behavior among institutional market participants. Market share gains fueled strong revenue and earnings growth with higher operating margins during the quarter.” Third Quarter Results Total revenues for the third quarter of 2020 increased 25% to $164.0 million, compared to $131.6 million for the third quarter of 2019. Operating income was $87.8 million, compared to $66.0 million for the third quarter of 2019, an increase of 33%. Operating margin was 53.5%, compared to 50.1% for the third quarter of 2019. Net income totaled $67.8 million, or $1.78 per share on a diluted basis, compared to $54.0 million, or $1.42 per share, for the third quarter of 2019. Commission revenue for the third quarter of 2020 increased 26% to $150.6 million, compared to $119.9 million for the third quarter of 2019. Variable transaction fees increased 28% to $123.2 million for the third quarter of 2020, compared to variable transaction fees of $96.0 million for the third quarter of 2019. U.S. high-grade trading volume as a percentage of FINRA’s high-grade TRACE trading volume increased to an estimated 22.2% for the third quarter of 2020, compared to an estimated 20.2% for the third quarter of 2019. Variable transaction fees in the third quarter of 2020 includes approximately $2.4 million of U.S. Treasuries tr...