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Nasdaq (NDAQ) Q2 Earnings & Revenues Beat Estimates

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Nasdaq, Inc. (NDAQ - Free Report) provides trading, clearing, exchange technology, regulatory, securities listing, information, and public company services worldwide.

The company has been focusing thoroughly on recognized technologies to help navigate the global capital markets towards potent, transparent and low-cost trading platforms.

The company has positioned itself firmly for the long term growth via a number of strategic acquisitions in the non-transaction space over the past years.

Nasdaq has been helping expand global exchanges with superior trading and clearing infrastructure, and build them as leading integrated multi-asset exchanges, thereby creating a niche for itself in the less-competitive zone.

Additionally, the rising focus on the rapidly growing exchange-traded products (ETPs), to build a strong global index business, is evident from Nasdaq’s strengthened distribution, technology and product generation capacities in this space. The inorganic story remains compelling with strategic buyouts.

The stock does have a modest history of delivering positive surprise in three of last four quarters, making for an average surprise of just about 2%.

Currently, Nasdaq has a Zacks Rank #3 (Hold), but that could definitely change following its earnings report that has just been released. The key takeaways from this immediate announcement are highlighted below:

Earnings: Nasdaq beats estimates. Nasdaq reported record earnings per share of 91 cents per share while our Zacks Consensus Estimates was 88 cents.
 

NASDAQ INC Price and EPS Surprise

NASDAQ INC Price and EPS Surprise | NASDAQ INC Quote

Revenue: Revenues surpassed our estimate. Our consensus called for revenues of $545 million, and the company reported revenues of $559 million.

Key Stats to Note: Operating expenses were $385 million up 28% year over year.

Listings business improved with about 106 new listings and 50 IPOs in the quarter.

Net debt during the quarter increased 54% over 2015 end level to $3.7 billion as of Jun 30, 2016.

Nasdaq bought back about $160 million worth shares.

During the quarter, Nasdaq acquired Boardvantage, a leading board portal solution and ISE, an operator of three electronic U.S. options exchanges, and achieved about $10 million in annualized run-rate cost synergies.

Check back later for our full write up on this NDAQ earnings report later!

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