Tradeweb Markets Q1 2024 Earnings Meet Expectations, Strong Start to the Year

Barclays's Jeremy Campbell raised their price target on Tradeweb Markets (NASDAQ: TW) by 3.4% from $118 to $122 on 2024/04/26. The analyst maintained their Strong Buy rating on the stock.

Tradeweb Markets, an electronic marketplace operator, reported its first-quarter earnings for 2024 on April 25th. The company's earnings met the Street's expectations as the business "continued to fire nicely," according to the analyst. Tradeweb reported earnings per share (EPS) of $0.71, in line with the Zacks Consensus Estimate, representing a 31.5% increase from Q1 2023's $0.54. Revenue for the quarter came in at $408.74 million, also in line with the Zacks Consensus Estimate and up 24.1% from Q1 2023's $329.25 million.

The company's CEO, Billy Hult, expressed his satisfaction with Tradeweb's strong start to 2024. Hult attributed the positive performance to broad-based organic growth and several important milestones. He highlighted that Tradeweb's quarterly average daily volume (ADV) reached a record $1.9 trillion, a 39% increase from the previous year's period. The company also achieved a record 17.6% share of U.S. High-Grade TRACE, reflecting steady growth in an area of strategic focus and investment.

In addition to the strong financial results, Tradeweb made significant moves in expanding its offering. The company completed the acquisition of r8fin, a technology provider specializing in algorithmic-based execution for U.S. Treasuries and interest rate futures. Hult expressed confidence in how this acquisition would strengthen Tradeweb's offering with macro hedge funds. Furthermore, Tradeweb agreed to acquire ICD, a leading institutional investment technology provider for corporate treasury organizations. This acquisition will allow Tradeweb to tap into the corporate client channel and create cross-selling opportunities.

Keefe, Bruyette & Woods analyst Kyle Voigt also provided an update on Tradeweb Markets on April 26th. Voigt raised the price target for the stock by 0.9%, from $110 to $111, while maintaining a Hold rating.

According to WallStreetZen, 85.7% of top-rated analysts currently rate Tradeweb Markets as a Strong Buy or Buy, with 14.3% viewing it as a Hold. No analysts recommend or strongly recommend selling the stock. The consensus forecast among analysts is that Tradeweb's upcoming year will deliver earnings per share (EPS) of $2.2. If the analysts' predictions hold true, Tradeweb's next yearly EPS will increase by 15.9% on a year-over-year basis.

Since the release of Tradeweb's latest quarterly report on April 25th, the stock price has experienced a slight decline of 0.3%. However, when compared to the previous year, the stock has seen significant growth, up 46%. During the same period, Tradeweb has outperformed the S&P 500, which has risen by 25.7%.

Barclays analyst Jeremy Campbell holds an impressive ranking among Wall Street analysts, placing in the top 6% out of 4,566 analysts. With an average return of 14.3% and a win rate of 73.2%, Campbell specializes in the Financial Services sector.

Tradeweb Markets Inc. operates electronic marketplaces across various regions. Its marketplaces facilitate trading in asset classes such as rates, credit, money markets, and equities. The company provides pre-trade data and analytics, trade execution and processing, as well as post-trade data and reporting services. Tradeweb serves a wide range of clients, including asset managers, hedge funds, insurance companies, central banks, banks and dealers, proprietary trading firms, and retail brokerage and financial advisory firms.

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