Benzinga | Apr 21, 2021 10:42AM EDT

A Preview Of MarketAxess Holdings's Earnings

MarketAxess Holdings (NASDAQ:MKTX) will be releasing its next round of earnings this Thursday, April 22. For all of the relevant information, here is your guide for Thursday's Q1 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts expect MarketAxess Holdings earnings of $2.12 per share. Revenue will likely be around $193.10 million, according to the consensus estimate. In the same quarter last year, MarketAxess Holdings reported earnings per share of $1.96 on sales of $168.98 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Thursday, EPS would be up 8.16%. Sales would be have grown 14.28% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 1.83 1.74 2.12 1.90EPS Actual 1.91 1.78 2.20 1.96Revenue Estimate 168.62 M 161.42 M 181.29 M 167.44 MRevenue Actual 171.35 M 164.01 M 184.79 M 168.98 M

Stock Performance

Over the last 52-week period, shares of MarketAxess Holdings are up 24.96%.

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.