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Nasdaq (NDAQ) Q1 Earnings Beat Estimates, Ups Dividend

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Have you been eager to see how Nasdaq, Inc. (NDAQ - Free Report) , performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this NY-based major exchange operator’s earnings release this morning:

An Earnings Beat

Nasdaq reported adjusted earnings per share of $1.10 per share, beating the Zacks Consensus Estimate of $1.05. Earnings improved 19% year over year.

Improved revenues drove the upside.

Nasdaq, Inc. Price and EPS Surprise

Nasdaq, Inc. Price and EPS Surprise | Nasdaq, Inc. Quote

How Was the Estimate Revision Trend?

You should note that the earnings estimate for Nasdaq depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate remained unchanged at $1.05 per share over the last 7days.

Nasdaq has a decent earnings surprise history. Overall, the company surpassed the Zacks Consensus Estimate by an average of 2.4% in the trailing four quarters.

Revenue Improves Y/Y

Nasdaq’s revenues of $583 million in the quarter increased 9% year over year. The Zacks Consensus Estimate was $594 million.

Key Takeaways

Adjusted operating expenses were $306 million in the reported quarter, up 9.3% year over year.

As of Dec 31, 2017, Nasdaq achieved $50 million in annualized run-rate cost synergies for the acquisitions in 2016 out of the targeted $60 million.

The Nasdaq Stock Market welcomed 42 new listings during the first quarter of 2017, 17 of which were IPOs.

As of Mar 31, 2017, debt decreased 11% over 2016 end level to $3.2 billion.

Nasdaq bought back shares worth $156 million in the quarter.

The company announced for 19% increase in its dividend to 38 cents per share.

The company expects 2017 non-GAAP operating expense in the range of $1,260–$1,300 million.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Nasdaq. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now it all depends on what sense the just-released report makes to the analysts.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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