Stock Monitor: A-Mark Precious Metals Post Earnings Reporting

LONDON, UK / ACCESSWIRE / February 16, 2018 / Active-Investors.com has just released a free earnings report on MarketAxess Holdings Inc. (NASDAQ: MKTX). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=MKTX. MarketAxess reported its fourth quarter and fiscal 2017 operating and financial results on January 31, 2018. The Investment Brokerage Company provided guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for A-Mark Precious Metals, Inc. (NASDAQ: AMRK), which also belongs to the Financial sector as the Company MarketAxess Holdings. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, MarketAxess Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the three months ended December 31, 2017, MarketAxess' total revenues increased 5.4% to $99.6 million compared to $94.4 million for Q4 2016.

For full year (FY) 2017, MarketAxess' total revenues increased 7.4% to a record $397.5 million compared to $369.9 million for FY16.

During Q4 2017, MarketAxess' total expenses increased 13.8% to $50.2 million compared to $44.1 million for Q4 2016. The increase in total expenses was largely due to higher employee compensation and benefit costs of $1.8 million, mainly due to an increase in headcount, technology, and communication costs of $1.2 million, general and administrative (G&A) costs of $1.1 million and depreciation and amortization (D&A) of $0.9 million.

During Q4 2017, MarketAxess' pre-tax income was $49.4 million compared to $50.3 million for Q4 2016, reflecting a drop of 1.9%. The Company's pre-tax margin was 49.6% for the reported quarter compared to 53.3% for the year ago same period.

For Q4 2017, MarketAxess' effective tax rate was 32.2% compared to 34.1% for Q4 2016. The Company's reported quarter income tax provision included a one-time tax charge totaling $0.31 per diluted share, related to the enactment of the Tax Cuts and Jobs Act (Tax Act), which was signed into law in December 2017, offset by excess tax benefits of $0.30 per diluted share, related to a new share-based compensation accounting standard (ASU 2016-09) adopted as of January 01, 2017.

For Q4 2017, MarketAxess' net income totaled $33.5 million, or $0.88 per diluted share, compared to $33.2 million, or $0.88 per share, for Q4 2016. The Company's earnings, adjusted for pretax expenses, came in at $0.89 per share, ahead of Wall Street's estimates of $0.88 per share.

MarketAxess' net income totaled $148.1 million, or $3.89 per diluted share, for FY17 compared to $126.2 million, or $3.34 per share, for FY16.

Revenue Details

During Q4 2017, MarketAxess' commission revenue grew 2.9% to $88.0 million compared to $85.5 million for Q4 2016. The Company's variable transaction fees decreased 6.5% to $65.4 million on total trading volume of $355.6 billion for the reported quarter compared to variable transaction fees of $69.9 million on total trading volume of $338.3 billion for the year ago same period. US high-grade trading volume as a percentage of FINRA's high-grade TRACE trading volume increased to an estimated 17.6% for Q4 2017 compared to an estimated 17.2% for Q4 2016.

For Q4 2017, MarketAxess' all other revenue, comprising of information services, post-trade services, investment income and other revenue, increased to $11.6 million, compared to $8.9 million for Q4 2016. The increase in all other revenue was principally due to higher information services revenue of $1.1 million and post-trade services revenue of $0.9 million.

Balance Sheet Data

As of December 31, 2017, MarketAxess total assets were $581.2 million and included $406.5 million in cash, cash equivalents, and investments.

During Q4 2017, the Company repurchased a total of 32,500 shares at a cost of $6.1 million. The Company's employee headcount was 429 as of December 31, 2017, compared to 383 as of December 31, 2016.

Outlook

For FY18, MarketAxess is forecasting expenses to be in the range of $220.0 million to $232.0 million, including duplicate occupancy costs of approximately $8.0 million for the Company's new corporate offices in New York during the build-out phase.

The Company's FY18 capital expenditures are expected to be in the range of $43.0 million to $50.0 million, including approximately $25 million of buildout costs for the new corporate offices. MarketAxess is estimating overall effective tax rate to be between 23.0% to 25.0%, including the estimated impact of the Tax Act and excess tax benefits on share awards that are expected to vest in 2018.

Stock Performance Snapshot

February 15, 2018 - At Thursday's closing bell, MarketAxess' stock was slightly up 0.66%, ending the trading session at $198.90.

Volume traded for the day: 128.40 thousand shares.

Stock performance in the last three-month ? up 14.35%; previous six-month period ? up 3.07%; and past twelve-month period ? up 3.76%

After yesterday's close, MarketAxess' market cap was at $7.46 billion.

Price to Earnings (P/E) ratio was at 51.09.

The stock has a dividend yield of 0.84%.

The stock is part of the Financial sector, categorized under the Investment Brokerage - National industry. This sector was up 0.8% at the end of the session.

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