Online trading platform Tradeweb Markets (TW) reported first-quarter earnings and revenue slightly above estimates. Tradeweb stock edged higher before Thursday's open, moving toward its first-ever buy point.
Tradeweb Earnings
Estimates: Analysts saw Tradeweb earnings of 22 cents a share on revenue of $186 million. Tradeweb's quarterly report is the first since its stock market debut.
Results: Tradeweb earnings came in at 23 cents a share as revenue grew 10% to $186.8 million.
Client trading activity drove double-digit gains in most revenue segments. Rates revenue rose 11% to $104.1 million; credit revenue increased 14% to $39.4 million; equities revenue gained 16% to $11.8 million; money market revenue rose 18% to $9.6 million; and market data revenue gained 9% to $16.9 million. "Other revenue fell 29% to $5 million due to "lower fees from a third party for certain licensing and development," the company said.
Average daily volume increased 21% to $646.6 billion, on robust demand across U.S. Treasuries, mortgage-backed securities, European interest rate swaps, U.S. high-grade credit, Chinese bonds and European ETFs.
Meanwhile, April average daily volume swelled 34% to $665.5 billion.
Tradeweb declared a first quarterly cash dividend of 8 cents per share.
Tradeweb Stock
Shares rose 3.4% to 41.26 shortly after the open on the stock market today. Tradeweb stock has an IPO base buy point of 44.35, according to MarketSmith analysis. That figure is 10 cents above the high that Tradeweb stock reached on April 15.
Tradeweb stock has seen its IBD Composite Rating improve since late April to a current 90.
The stock's relative strength line, a gauge of its performance against the S&P 500, could be better. The RS line is the blue line in the chart below.
Tradeweb allows traders to buy and sell bonds, derivatives and other financial instruments, a part of the financial markets that hasn't digitize as rapidly as stocks. The company aims to tap that opportunity.
Tradeweb went public on April 4, pricing at 27. Its relatively staid IPO came backed with actual profits, unlike the flashier IPOs of ride-sharing service Lyft (LYFT) and idea-sharing social media site Pinterest (PINS).
Zoom Video Communications (ZM), another hot new IPO stock and provider of videoconferencing services, just turned profitable.
Please follow Aparna Narayanan on Twitter at @IBD_ANarayanan for stock market updates and more.
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