Based in New York, MarketAxess Holdings Inc. (MKTX) is a premier multi-dealer trading platform that connects institutional investors with global liquidity across a wide range of fixed-income securities, including U.S. high-grade corporate bonds, high-yield bonds, and emerging market debt. Valued at a market cap of $9.7 billion, the company derives its revenue from commissions, information services, and post-trade solutions. It is all geared to announce its Q3 earnings for fiscal 2024 on Wednesday, Oct. 23. 

Ahead of the event, analysts expect MarketAxess to report a profit of $1.64 per share, up 12.3% from $1.46 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in three of the last four quarters while missing on one occasion. Its EPS of $1.72 beat the consensus estimate by 1.8% in the previous quarter.

Looking ahead, analysts expect MarketAxess to report an EPS of $7.06 in fiscal 2024, up 2.5% from $6.89 in the fiscal year 2023. Its fiscal 2025 EPS is projected to rise 12.8% year over year to $7.96. 

MKTX stock has surged 33.8% over the past 52 weeks, slightly underperforming the broader S&P 500 Index's ($SPX) 34.8% gains and the Financial Select Sector SPDR Fund’s (XLF) 38.7% returns over the same time frame.

On Oct. 3, MKTX rose over 7% after reporting a 52.5% year-over-year surge in total average daily volume on its electronic trading platform for September.

Despite missing Wall Street’s revenue estimates, shares of MKTX jumped 5.2% following its Q2 earnings release on Aug. 6. The company's geographic expansion and product diversification contributed to a rise in the average daily volume (ADV) of emerging markets and Eurobonds, which helped to bolster investor confidence.

MarketAxess stock has a “Moderate Buy” rating overall, which is a step up from “Hold” three months ago. Among the 14 analysts covering the stock, four recommend a "Strong Buy," nine suggest a "Hold," and the remaining one advises a “Moderate Sell.”

While MKTX currently trades above its mean price target of $240.31, the Street-high target of $310 represents a potential upswing of 13.2% from the prevailing price levels.

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