A Solid Q4 for Tradeweb, but Headwinds From Exchange Rates and Mortgage Market Weakness Persist

Wide-moat-rated Tradeweb Markets reported decent earnings that were in line with our expectations, as strength across multiple asset classes was offset by headwinds in its treasury and mortgage bond trading businesses. Revenue increased 5.8% from last year, or 9.3% when adjusted for foreign exchange, to $293 million. Adjusted diluted earnings per share of $0.49 was 16.7% higher than last year, or 21.4% higher on a constant-currency basis. As we incorporate these results, we do not plan to materially alter our $84 fair value estimate.