MarketAxess's 1Q25 Total Average Trading Volume Jumps to $42.9B

MarketAxess Holdings Inc. MKTX announced impressive growth in its trading volumes for the first quarter of 2025. The total credit average daily trading volume (ADV) reached nearly $15.9 billion, marking a year-over-year increase of 6%. This growth was driven by notable gains across various segments, including a 9% boost in emerging markets ADV, and 15% growth in Eurobonds ADV. Total ADV rose 31% to $42.9 billion in the March quarter. 

One of the standout performers was the Municipal bonds segment (42%), with ADV jumping 52% year-over-year in March alone. However, U.S. high-yield estimated market share declined dropped to 12.4% in the first quarter from 13% a year ago. Nevertheless, emerging markets trading ADV increased to $3.9 billion in the first quarter. 

The company also experienced significant growth from the impact of single-dealer portfolio trades. Its order and execution workflow solution, AxessIQ, reached $159 million ADV, increasing 15% year over year. Client engagement with X-Pro was also robust, with 85% of the portfolio trading volume executed on the trading interface in the first quarter.

The targeted block solution of late 2024 is aiding its block trading in emerging markets. This has generated cumulative trading volume of approximately $1.2 billion since launch.  Notably, its eurobonds block trading ADV for the month of March surged 106% year over year. 

Final Takeaway

These positive trends are likely to  support MarketAxess' first-quarter financial results. The Zacks Consensus Estimate for MarketAxess’ first-quarter earnings is pegged at $1.84 per share, which remained stable over the past week. The  consensus estimate for revenues stands at $213.8 million, implying a 1.6% year-over-year increase.  The company has surpassed earnings estimates in each of the past four quarters, with an average surprise of 2.9%.

MarketAxess is demonstrating robust growth across key trading segments, particularly in Eurobonds and emerging markets. Despite some challenges in the U.S. high -yield, the overall trading volume and international expansion signal strong  prospects, making it a valuable stock to hold in your portfolio. MarketAxess currently has a Zacks Rank #3 (Hold).

Key Picks

Some better-ranked stocks in the broader Finance space are Atlanticus Holdings Corporation ATLC, Oportun Financial Corporation OPRT and Acadian Asset Management Inc. AAMI, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Atlanticus’s current-year earnings is pegged at $6.17 per share, up from 29.4% a year ago. Atlanticus beat earnings estimates in each of the past four quarters, with an average surprise of 11.41%. The consensus mark for its current-year revenues is pegged at nearly $1.5 billion, which indicates a 10.8% year-over-year jump .

The Zacks Consensus Estimate for Oportun’s 2025 earnings indicates 65.3% year-over-year growth. In the past two months, Oportun has witnessed four upward estimate revisions against none in the opposite direction. It beat earnings estimates in each of the past four quarters, with an average surprise of 209.3%.

The Zacks Consensus Estimate for Acadian’s current-year earnings suggests a 72 cent year-over-year improvement. In the past 60 days, Acadian has witnessed one upward estimate revision against none in the opposite direction. The consensus mark for current year revenues suggests a 4.8% year-over-year.

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