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MarketAxess Holdings (NASDAQ:MKTX) stock gained 1.9% in Wednesday morning trading after posting better-than-expected Q4 earnings thanks to an increase in the electronic trading platform’s credit commission revenue.
For full-year 2024, the company expects revenue from Pragma to increase in the mid-single digits (percent). Pragma’s Q4 2023 revenue was $7.6M.
Expenses for the year are expected to come in at $480.0-$500.0M and includes a full year of Pragma expenses estimated to be $33.0M-$35.0M. Capital expenditures to support new protocols, products and trading platform enhancements are expected to be $60.0M-$65.0M.
“We are entering 2024 with a more favorable backdrop for fixed-income, and our client franchise has never been stronger,” said CEO Chris Concannon.
Q4 EPS of $1.84, vs. $1.72 average analyst estimate, climbed from $1.46 in the prior quarter and from $1.58 in the year-earlier period.
Revenue of $197.2M, slightly trailing the $197.4M consensus, advanced from $172.3M in Q3 and from $177.9M a year ago.
Q4 expenses rose 19.9% Y/Y to $120.2M.
Credit commission revenue of $161.9M increased from $153.7M in Q4 of last year, driven by higher estimated market volumes and a $1.8M, or 5%, increase in total credit fixed-distribution fees, partially offset by lower estimated market share and lower average fee per million.
Rates commission revenue came in at $4.8M, in line with the prior year.
Information services revenue rose 15% Y/Y to $11.9M, reflecting net new data contract revenue and the impact of foreign currency fluctuations.
Earlier, MarketAxess (MKTX) declared a quarterly dividend of $0.72 per share, in line with the previous payout.
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