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Nasdaq (NDAQ) to Report Q1 Earnings: What's in the Cards?
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Nasdaq, Inc. (NDAQ - Free Report) is set to report first-quarter 2017 results on Apr 26, before the market opens. Last quarter, the company had a positive earnings surprise of +1.06%. Let’s see how things are shaping up for this announcement.
Factors to Influence Q1 Results
Nasdaq is likely to have generated non-transaction revenues in the to-be-reported quarter. This, along with strategic acquisitions, is likely have booted the top line.
Continued share buybacks are expected to have provided additional upside to the bottom line.
However, escalating expenses are likely to have weighed on margin expansion. Cash equity trading revenues, derivative trading and clearing revenues are also expected to have partially offset the upside.
Nasdaq reported mixed volumes for first-quarter 2017. U.S. equity options volume surged 72% year over year to 385 million contracts. Revenue per contract, however was down by a penny on a year-over-year basis, to 15 cents. Market share jumped to 42.5% European options. Futures volume, however, decreased 21% year over year to 21.7 million contracts in the first quarter. Revenue per contract was 42 cents, up by a cent on a year-over-year basis. Under its cash equities, Nasdaq’s U.S. matched equity volume in the reported month totaled 74.7 billion shares, down 20% from year-ago quarter. Further, European equity volume declined 4.6% year over year to $206 billion. U.S. fixed income volume in the first quarter decreased 16 to $5 billion, whereas European fixed income volume increased 16% to 7.2 million contracts, both on a year-over-year basis. Total listings in the first quarter improved 2.7% over the year-ago quarter to 3,800.
With respect to the surprise trend, the company delivered positive surprises in three of the last four quarters with an average beat of 1.68%.
Shares of Nasdaq have been fluctuating over the last few days. We wait to see how the stock fares after the first-quarter earnings release.
Earnings Whispers
Our proven model does not conclusively show that Nasdaq is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Nasdaq has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.05. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Nasdaq carries a Zacks Rank #3, which increases the predictive power of ESP. However, an Earnings ESP of -1.00% makes surprise prediction difficult.
Conversely, we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies from the finance sector that you may want to consider as these have the right combination of elements to post an earnings beat this quarter.
Chubb Limited (CB - Free Report) has an Earnings ESP of +0.82% and a Zacks Rank #3. The company is set to report first-quarter earnings on Apr 25.
Reinsurance Group of America Inc. (RGA - Free Report) has an Earnings ESP of +1.42% and a Zacks Rank #2. The company is slated to report first-quarter earnings on Apr 27.
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Nasdaq (NDAQ) to Report Q1 Earnings: What's in the Cards?
Nasdaq, Inc. (NDAQ - Free Report) is set to report first-quarter 2017 results on Apr 26, before the market opens. Last quarter, the company had a positive earnings surprise of +1.06%. Let’s see how things are shaping up for this announcement.
Factors to Influence Q1 Results
Nasdaq is likely to have generated non-transaction revenues in the to-be-reported quarter. This, along with strategic acquisitions, is likely have booted the top line.
Continued share buybacks are expected to have provided additional upside to the bottom line.
However, escalating expenses are likely to have weighed on margin expansion. Cash equity trading revenues, derivative trading and clearing revenues are also expected to have partially offset the upside.
Nasdaq reported mixed volumes for first-quarter 2017. U.S. equity options volume surged 72% year over year to 385 million contracts. Revenue per contract, however was down by a penny on a year-over-year basis, to 15 cents. Market share jumped to 42.5% European options. Futures volume, however, decreased 21% year over year to 21.7 million contracts in the first quarter. Revenue per contract was 42 cents, up by a cent on a year-over-year basis. Under its cash equities, Nasdaq’s U.S. matched equity volume in the reported month totaled 74.7 billion shares, down 20% from year-ago quarter. Further, European equity volume declined 4.6% year over year to $206 billion. U.S. fixed income volume in the first quarter decreased 16 to $5 billion, whereas European fixed income volume increased 16% to 7.2 million contracts, both on a year-over-year basis. Total listings in the first quarter improved 2.7% over the year-ago quarter to 3,800.
With respect to the surprise trend, the company delivered positive surprises in three of the last four quarters with an average beat of 1.68%.
Nasdaq, Inc. Price and EPS Surprise
Nasdaq, Inc. Price and EPS Surprise | Nasdaq, Inc. Quote
Shares of Nasdaq have been fluctuating over the last few days. We wait to see how the stock fares after the first-quarter earnings release.
Earnings Whispers
Our proven model does not conclusively show that Nasdaq is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Nasdaq has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.05. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Nasdaq carries a Zacks Rank #3, which increases the predictive power of ESP. However, an Earnings ESP of -1.00% makes surprise prediction difficult.
Conversely, we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies from the finance sector that you may want to consider as these have the right combination of elements to post an earnings beat this quarter.
Chubb Limited (CB - Free Report) has an Earnings ESP of +0.82% and a Zacks Rank #3. The company is set to report first-quarter earnings on Apr 25.
Selective Insurance Group, Inc. (SIGI - Free Report) , which is set to report first-quarter earnings on Apr 26, has an Earnings ESP of +9.59% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Reinsurance Group of America Inc. (RGA - Free Report) has an Earnings ESP of +1.42% and a Zacks Rank #2. The company is slated to report first-quarter earnings on Apr 27.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>