MarketAxess Holdings (NASDAQ:MKTX) reported fourth-quarter results that beat analyst expectations, fueled by a surge in portfolio trading and international expansion that offset a broader slowdown in government bond volumes.
The New York-based electronic trading platform saw total revenue climb 3.5% to $209.4 million, according to a company statement Friday.
The growth was spearheaded by a 41% jump in portfolio trading average daily volume, which reached a record $1.5 billion.
Within that segment, U.S. high-yield and emerging markets hit all-time highs, driving the company’s share of the U.S. credit portfolio trading market to a record 21%.
While total expenses rose 9% to $133.4 million—partly due to foreign currency headwinds—the firm’s bottom line was bolstered by a significant tax benefit.
MarketAxess reported diluted earnings per share of $2.51, or $1.68 when adjusted for notable items.
In a move to return capital to shareholders, the company increased its stock repurchase authorization to $505 million and entered into a $300 million accelerated share buyback agreement.
Looking ahead, MarketAxess established new three-year financial targets, betting that its momentum in Eurobonds and dealer-initiated channels will sustain growth even if U.S. Treasury volatility cools.