Tradeweb Markets (TW) Q4 Earnings: What To Expect

Electronic trading platform Tradeweb Markets (NASDAQ:TW) will be announcing earnings results this Thursday before the bell. Here’s what you need to know.

Tradeweb Markets beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $508.6 million, up 13.3% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates.

Is Tradeweb Markets a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Tradeweb Markets’s revenue to grow 11.6% year on year to $517.2 million, slowing from the 25.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.84 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Tradeweb Markets has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 0.6% on average.

Looking at Tradeweb Markets’s peers in the capital markets segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Nasdaq delivered year-on-year revenue growth of 13.4%, beating analysts’ expectations by 1.4%, and MSCI reported revenues up 10.6%, in line with consensus estimates. Nasdaq traded down 1.8% following the results while MSCI was up 4.6%.

Read our full analysis of Nasdaq’s results here and MSCI’s results here.

While some of the capital markets stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. Tradeweb Markets is down 10% during the same time and is heading into earnings with an average analyst price target of $127.08 (compared to the current share price of $99.48).

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