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What's in Store for Nasdaq (NDAQ) This Earnings Season?
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Nasdaq, Inc. (NDAQ - Free Report) is slated to report second-quarter 2023 earnings on Jul 19, before the opening bell. The company delivered a positive earnings surprise of 6.15% in the last reported quarter.
Factors to Consider
Solid organic revenue growth, strong performance at corporate solutions and analytics businesses and increased professional services fees are likely to have aided Nasdaq’s second-quarter performance.
Improved performance at Workflow & Insights, Anti-Financial Crime and Marketplace technology businesses is expected to have benefited non-trading revenues.
Workflow & Insights revenues are likely to have benefited from an increase in both analytics and corporate solutions revenues. The analytics revenues are likely to gain from growth in eVestment and Solovis product offerings. The corporate solutions revenues are expected to gain from the increased adoption of ESG services. We expect Workflow & Insights revenues to increase 1.8% to $117.1 million.
Anti-Financial Crime revenues are likely to have been driven by an increase in demand for fraud detection and antimoney laundering solutions. We expect Anti-Financial Crime segment revenues to increase 12.7% to $84.5 million.
Marketplace technology revenues are likely to have been driven by higher trade management services revenues associated with increased demand for connectivity services as well as higher market technology revenues due to increased professional services fees. We expect Marketplace technology revenues to increase 4.8% to $146.7 million.
Expenses are likely to have increased owing to higher compensation and benefits, computer operations and data communications, occupancy and restructuring charges as well as increased depreciation and amortization.
Nasdaq expects expenses to increase about $20 million from the first quarter of 2023. We expect the metric to increase 10.5% to $456.3 million. The continued share buyback is anticipated to have provided an additional boost to the bottom line.
The Zacks Consensus Estimate for earnings is pegged at 65 cents, indicating a 5.8% decrease from the prior-year reported figure.
Q2 Volumes
NDAQ reported volumes for second-quarter 2023. U.S. equity options volume increased 4.4% year over year to 746 million contracts. European options and futures volume increased 9.6% year over year to 18.2 million contracts.
Revenues per contract for U.S. equity options remained unchanged year over year to 12 cents, while the same for European options and futures decreased 20.4% to 39 cents.
Under its cash equities, Nasdaq’s U.S. matched equity volume in the second quarter grossed 113.7 billion shares, down 18.2% from the prior-year quarter. European equity volume decreased 18.5% year over year to $198 billion.
In the second quarter, there were 4,808 listed companies on Nasdaq compared with 5,064 in the year-ago period. Total listings decreased 3.1% year over year to 5,355.
We expect data and listing services revenues to increase 1.7% to $186 million in the to-be-reported quarter.
What Our Quantitative Model States
Our proven model does not conclusively predict an earnings beat for Nasdaq this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). That is not the case here.
Earnings ESP: Nasdaq has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at a loss of 65 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Nasdaq currently carries a Zacks Rank #3.
Stocks to Consider
Here are three stocks from the finance sector that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
The Zacks Consensus Estimate for Corebridge’s earnings for the to-be-reported quarter is pegged at 96 cents per share, which witnessed two upward estimate revisions in the past 30 days against none in the opposite direction. The consensus estimate for CRBG’s revenues is pegged at $4.5 billion.
Aon plc (AON - Free Report) has an Earnings ESP of +2.56% and a Zacks Rank of 3.
The Zacks Consensus Estimate for AON’s earnings for the to-be-reported quarter is pegged at $2.82 per share, indicating 7.2% year-over-year growth. AON beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 1.6%.
CME Group Inc. (CME - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank of 2.
The Zacks Consensus Estimate for CME Group’s earnings for the to-be-reported quarter is pegged at $2.16 per share, suggesting a 9.6% year-over-year increase. CME beat earnings estimates in all the past four quarters, with an average surprise of 2.2%.
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What's in Store for Nasdaq (NDAQ) This Earnings Season?
Nasdaq, Inc. (NDAQ - Free Report) is slated to report second-quarter 2023 earnings on Jul 19, before the opening bell. The company delivered a positive earnings surprise of 6.15% in the last reported quarter.
Factors to Consider
Solid organic revenue growth, strong performance at corporate solutions and analytics businesses and increased professional services fees are likely to have aided Nasdaq’s second-quarter performance.
Improved performance at Workflow & Insights, Anti-Financial Crime and Marketplace technology businesses is expected to have benefited non-trading revenues.
Workflow & Insights revenues are likely to have benefited from an increase in both analytics and corporate solutions revenues. The analytics revenues are likely to gain from growth in eVestment and Solovis product offerings. The corporate solutions revenues are expected to gain from the increased adoption of ESG services. We expect Workflow & Insights revenues to increase 1.8% to $117.1 million.
Anti-Financial Crime revenues are likely to have been driven by an increase in demand for fraud detection and antimoney laundering solutions. We expect Anti-Financial Crime segment revenues to increase 12.7% to $84.5 million.
Marketplace technology revenues are likely to have been driven by higher trade management services revenues associated with increased demand for connectivity services as well as higher market technology revenues due to increased professional services fees. We expect Marketplace technology revenues to increase 4.8% to $146.7 million.
Expenses are likely to have increased owing to higher compensation and benefits, computer operations and data communications, occupancy and restructuring charges as well as increased depreciation and amortization.
Nasdaq expects expenses to increase about $20 million from the first quarter of 2023. We expect the metric to increase 10.5% to $456.3 million.
The continued share buyback is anticipated to have provided an additional boost to the bottom line.
The Zacks Consensus Estimate for earnings is pegged at 65 cents, indicating a 5.8% decrease from the prior-year reported figure.
Q2 Volumes
NDAQ reported volumes for second-quarter 2023. U.S. equity options volume increased 4.4% year over year to 746 million contracts. European options and futures volume increased 9.6% year over year to 18.2 million contracts.
Revenues per contract for U.S. equity options remained unchanged year over year to 12 cents, while the same for European options and futures decreased 20.4% to 39 cents.
Under its cash equities, Nasdaq’s U.S. matched equity volume in the second quarter grossed 113.7 billion shares, down 18.2% from the prior-year quarter. European equity volume decreased 18.5% year over year to $198 billion.
In the second quarter, there were 4,808 listed companies on Nasdaq compared with 5,064 in the year-ago period. Total listings decreased 3.1% year over year to 5,355.
We expect data and listing services revenues to increase 1.7% to $186 million in the to-be-reported quarter.
What Our Quantitative Model States
Our proven model does not conclusively predict an earnings beat for Nasdaq this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). That is not the case here.
Earnings ESP: Nasdaq has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at a loss of 65 cents. 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.
Stocks to Consider
Here are three stocks from the finance sector that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Corebridge Financial, Inc. (CRBG - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Corebridge’s earnings for the to-be-reported quarter is pegged at 96 cents per share, which witnessed two upward estimate revisions in the past 30 days against none in the opposite direction. The consensus estimate for CRBG’s revenues is pegged at $4.5 billion.
Aon plc (AON - Free Report) has an Earnings ESP of +2.56% and a Zacks Rank of 3.
The Zacks Consensus Estimate for AON’s earnings for the to-be-reported quarter is pegged at $2.82 per share, indicating 7.2% year-over-year growth. AON beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 1.6%.
CME Group Inc. (CME - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank of 2.
The Zacks Consensus Estimate for CME Group’s earnings for the to-be-reported quarter is pegged at $2.16 per share, suggesting a 9.6% year-over-year increase. CME beat earnings estimates in all the past four quarters, with an average surprise of 2.2%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.