Credit Take-Rate Slides 9% as MarketAxess Posts Mixed Q3; ICE Deal Clears HSR
MKTX sits 51% above its 52-week low of $108.75.
Summary
Q3 credit commission revenue slipped 2% to $161.2M even as total credit ADV rose 7% year over year — the take rate (FPM) fell 9%, so volume gains are being given away on price. Rates was the bright spot at $8.9M, up 34%, and info services added $15.2M, up 10%, but neither is big enough to offset the core credit softness. The quarter's adjusted EPS came in at $1.86, and the company is not issuing guidance due to its takeover by Intercontinental Exchange. The DOJ and FTC granted early termination of the HSR waiting period, following the 8-K filed last evening and the September refiling that had pushed the review to October 29 — the $167-per-share ICE cash deal now needs shareholder approval and remaining clearances. With the stock trading well below the $167 deal price, the spread is pricing some completion risk; the FPM trend matters less to the tape than the proxy vote and any remaining regulatory conditions.
At the time of this announcement, MKTX was trading at $164.65 on NASDAQ in the Finance sector, with a market capitalization of approximately $5.8B. The 52-week trading range was $108.75 to $195.97. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Wiseek News.