Earnings Preview For MarketAxess Holdings

MarketAxess Holdings MKTX unveils its next round of earnings this Wednesday, July 21. Here is Benzinga's everything-that-matters guide for the 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

Based on MarketAxess Holdings management projections, analysts predict EPS of $1.75 on revenue of $183.55 million. MarketAxess Holdings EPS in the same period a year ago totaled $2.2. Sales were $184.79 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 report earnings in line when it publishes results Wednesday, earnings would be down 20.45%. Sales would have fallen 0.67% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Stock Performance

Over the past 52-week period, shares of MarketAxess Holdings have declined 12.25%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

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.