MarketAxess Holdings's Earnings Outlook

MarketAxess Holdings MKTX announces its next round of earnings this Thursday, April 22. Here is Benzinga's everything-that-matters guide for this Thursday's Q1 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see MarketAxess Holdings reporting earnings of $2.12 per share on revenue of $193.10 million. In the same quarter last year, MarketAxess Holdings posted EPS of $1.96 on sales of $168.98 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate, earnings would be up 8.16%. Revenue would be up 14.28% from the same quarter last year. Here is how the MarketAxess Holdings's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

For a full 12 months, the return has risen by 26.26%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. MarketAxess Holdings is scheduled to hold the call at 10:00:00 ET and can be accessed here.