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Is a Beat in Store for Nasdaq (NDAQ) This Earnings Season?
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Nasdaq, Inc. (NDAQ - Free Report) is slated to report first-quarter 2022 earnings on Apr 20, before the opening bell. The company delivered an earnings surprise in each of the last four quarters, the average being 8.60%.
Factors to Consider
Growth across the segments and contributions from the acquisition of Verafin are likely to have aided performance in the to-be-reported quarter.
The solid performance of Market Technology and continued strong growth of Market Data, Index and Analytics businesses are likely to have aided Non-trading revenues. Higher SaaS revenues and growing Anti Financial Crime Technology business are likely to have driven Market Technology.
The Zacks Consensus Estimate for Analytics businesses revenues is pegged at $54 million, indicating an increase of 12.5% from the year-ago reported figure. The consensus estimate for Index revenues is pegged at $128 million, suggesting growth of 25.5% from the year-ago reported figure.
Market Technology revenues are likely to have benefited from the positive impact of the acquisition of Verafin and continued growth in surveillance solutions, growing Anti Financial Crime Technology business and higher SaaS revenues. The Zacks Consensus Estimate for Market Technology revenues is pegged at $127 million, suggesting growth of 27% from the prior-year reported figure.
Higher organic revenues, higher equity derivatives, cash equities, trade management services revenues, and strong operating leverage are expected to have fueled Market Services segment revenues.
The Investment Intelligence segment is expected to have benefited from higher proprietary data revenues from new sales, higher licensing revenues from an increase in average AUM in ETPs linked to Nasdaq indexes, higher licensing revenues from futures trading linked to the Nasdaq-100 Index as well as growth in eVestment platform driven by new sales.
Solid growth in the Nasdaq-listed issuer base across the U.S. and Nordic markets, organic growth, higher U.S. listings revenues, owing to expansion in the listed-issuer base, increased adoption across the breadth of Investor Relations, and newer ESG Advisory and reporting offerings are likely to have driven the Corporate Platforms segment.
Expenses are expected to have risen on higher organic growth, increase from the impact of acquisitions and increase from the impact of changes in foreign exchange rates.
Continued share buyback is likely to have aided the bottom line.
The Zacks Consensus Estimate for earnings stands at $1.93, indicating a 1.5% decrease from the prior-year reported figure.
Q1 Volumes
Nasdaq reported mixed volumes for first-quarter 2022. U.S. equity options volume decreased 11% year over year to 794 million contracts. European options and futures volume increased 3.6% year over year to 23 million contracts.
Revenues per contract for U.S. equity options increased 18.2% year over year to 13 cents while the same for European options and futures increased by a cent to 44 cents.
Under its cash equities, Nasdaq’s U.S. matched equity volume in the first quarter grossed 142.2 billion shares, down 6.8% from the prior-year quarter. European equity volume decreased 2.5% year over year to $315 billion. Under fixed income commodities, European fixed income volume remained flat at 7.9 million contracts.
In the first quarter, there were 5,039 listed companies on Nasdaq compared with 4,347 in the year-ago period. Total listings grew 15.3% year over year to 5,415.
The consensus estimate for listing revenues is pegged at $105 million, suggesting growth of 7.1% from the year-ago reported figure.
What Our Quantitative Model States
Our proven model predicts an earnings beat for Nasdaq this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Earnings ESP: Nasdaq has an Earnings ESP of +0.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks from the finance sector with the perfect combination of elements to surpass estimates in their upcoming releases.
Commerce Bancshares (CBSH - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank #2. The Zacks Consensus Estimate for the to-be-reported quarter implies a year-over-year decrease of 16%
CBSH’s earnings surpassed estimates in each of the last four quarters, the average beat being 13.98%. The Zacks Consensus Estimate for Commerce Bancshares’ 2022 earnings has moved 2.2% north in the past seven days.
First Horizon (FHN - Free Report) has an Earnings ESP of +7.47% and a Zacks Rank #2. The Zacks Consensus Estimate for the to-be-reported quarter implies a year-over-year decrease of 33.3%
FHN’s earnings surpassed estimates in each of the last four quarters, the average beat being 30.25%. The Zacks Consensus Estimate for First Horizon’s 2022 earnings has moved 1.3% north in the past seven days.
Fulton Financial (FULT - Free Report) has an Earnings ESP of +6.92 and a Zacks Rank #1. The Zacks Consensus Estimate for FULT’s 2022 earnings implies a year-over-year decrease of 25.6%.
Fulton Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 20.4%. The Zacks Consensus Estimate for FULT’s 2022 earnings has moved 1.4% north in the past seven days.
Image: Bigstock
Is a Beat in Store for Nasdaq (NDAQ) This Earnings Season?
Nasdaq, Inc. (NDAQ - Free Report) is slated to report first-quarter 2022 earnings on Apr 20, before the opening bell. The company delivered an earnings surprise in each of the last four quarters, the average being 8.60%.
Factors to Consider
Growth across the segments and contributions from the acquisition of Verafin are likely to have aided performance in the to-be-reported quarter.
The solid performance of Market Technology and continued strong growth of Market Data, Index and Analytics businesses are likely to have aided Non-trading revenues. Higher SaaS revenues and growing Anti Financial Crime Technology business are likely to have driven Market Technology.
The Zacks Consensus Estimate for Analytics businesses revenues is pegged at $54 million, indicating an increase of 12.5% from the year-ago reported figure. The consensus estimate for Index revenues is pegged at $128 million, suggesting growth of 25.5% from the year-ago reported figure.
Market Technology revenues are likely to have benefited from the positive impact of the acquisition of Verafin and continued growth in surveillance solutions, growing Anti Financial Crime Technology business and higher SaaS revenues. The Zacks Consensus Estimate for Market Technology revenues is pegged at $127 million, suggesting growth of 27% from the prior-year reported figure.
Higher organic revenues, higher equity derivatives, cash equities, trade management services revenues, and strong operating leverage are expected to have fueled Market Services segment revenues.
The Investment Intelligence segment is expected to have benefited from higher proprietary data revenues from new sales, higher licensing revenues from an increase in average AUM in ETPs linked to Nasdaq indexes, higher licensing revenues from futures trading linked to the Nasdaq-100 Index as well as growth in eVestment platform driven by new sales.
Solid growth in the Nasdaq-listed issuer base across the U.S. and Nordic markets, organic growth, higher U.S. listings revenues, owing to expansion in the listed-issuer base, increased adoption across the breadth of Investor Relations, and newer ESG Advisory and reporting offerings are likely to have driven the Corporate Platforms segment.
Expenses are expected to have risen on higher organic growth, increase from the impact of acquisitions and increase from the impact of changes in foreign exchange rates.
Continued share buyback is likely to have aided the bottom line.
The Zacks Consensus Estimate for earnings stands at $1.93, indicating a 1.5% decrease from the prior-year reported figure.
Q1 Volumes
Nasdaq reported mixed volumes for first-quarter 2022. U.S. equity options volume decreased 11% year over year to 794 million contracts. European options and futures volume increased 3.6% year over year to 23 million contracts.
Revenues per contract for U.S. equity options increased 18.2% year over year to 13 cents while the same for European options and futures increased by a cent to 44 cents.
Under its cash equities, Nasdaq’s U.S. matched equity volume in the first quarter grossed 142.2 billion shares, down 6.8% from the prior-year quarter. European equity volume decreased 2.5% year over year to $315 billion. Under fixed income commodities, European fixed income volume remained flat at 7.9 million contracts.
In the first quarter, there were 5,039 listed companies on Nasdaq compared with 4,347 in the year-ago period. Total listings grew 15.3% year over year to 5,415.
The consensus estimate for listing revenues is pegged at $105 million, suggesting growth of 7.1% from the year-ago reported figure.
What Our Quantitative Model States
Our proven model predicts an earnings beat for Nasdaq this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Earnings ESP: Nasdaq has an Earnings ESP of +0.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Nasdaq, Inc. Price and EPS Surprise
Nasdaq, Inc. price-eps-surprise | Nasdaq, Inc. Quote
Zacks Rank: Nasdaq currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are some other stocks from the finance sector with the perfect combination of elements to surpass estimates in their upcoming releases.
Commerce Bancshares (CBSH - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank #2. The Zacks Consensus Estimate for the to-be-reported quarter implies a year-over-year decrease of 16%
CBSH’s earnings surpassed estimates in each of the last four quarters, the average beat being 13.98%. The Zacks Consensus Estimate for Commerce Bancshares’ 2022 earnings has moved 2.2% north in the past seven days.
First Horizon (FHN - Free Report) has an Earnings ESP of +7.47% and a Zacks Rank #2. The Zacks Consensus Estimate for the to-be-reported quarter implies a year-over-year decrease of 33.3%
FHN’s earnings surpassed estimates in each of the last four quarters, the average beat being 30.25%. The Zacks Consensus Estimate for First Horizon’s 2022 earnings has moved 1.3% north in the past seven days.
Fulton Financial (FULT - Free Report) has an Earnings ESP of +6.92 and a Zacks Rank #1. The Zacks Consensus Estimate for FULT’s 2022 earnings implies a year-over-year decrease of 25.6%.
Fulton Financial’s earnings surpassed estimates in each of the last four quarters, the average beat being 20.4%. The Zacks Consensus Estimate for FULT’s 2022 earnings has moved 1.4% north in the past seven days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.