We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nasdaq (NDAQ) Beats on Q2 Earnings, Tightens Expense View
Read MoreHide Full Article
Nasdaq (NDAQ - Free Report) reported second-quarter 2023 adjusted earnings per share of 71 cents, beating the Zacks Consensus Estimate of 65 cents. The bottom line improved 3% year over year. The improvement was mainly driven by organic growth and solid results at the Solutions segment.
Nasdaq’s revenues of $925 million increased 4% year over year. The upside can primarily be attributed to 4% impact from organic growth, including contributions from all segments. It was partially offset by a $2 million decrease from the impact of changes in FX rates and a $2 million decrease from the net impact of an acquisition and divestiture. The top line beat the Zacks Consensus Estimate of $910 million.
Annualized Recurring Revenue (ARR) increased 6% year over year. Annualized SaaS revenues increased 11% and represented 36% of ARR.
Revenues at Trading Services decreased 1% year over year to $250 million. The increase reflects no organic growth and a $2 million negative impact from changes in FX rates.
Revenues at the Solutions segment increased 6% year over year to $647 million, driven by a 6% impact from organic growth.
Adjusted operating expenses were $441 million, up 7% from the year-ago period. The improvement primarily reflects increased expenses associated with the continued investment in people and its businesses to drive long-term growth, partially offset by changes in FX rates. Our estimate for operating expenses was $456 million.
Operating margin of 52% contracted 200 basis points year over year.
The Nasdaq stock market welcomed 62 new company listings in the second quarter of 2023, including 23 initial public offerings. The number of listed companies was 4,106 at quarter end.
Financial Update
Nasdaq had cash and cash equivalents of $5.3 billion as of Jun 30, 2023, up from $0.5 billion at 2022-end. Long-term debt increased to $9.8 billion as of Jun 30, 2023 from $4.7 billion at 2022 end.
Capital Deployment
Nasdaq returned $109 million to shareholders in the second quarter of 2023 through dividends.
The board of directors approved a dividend of 22 cents per share. The dividend will be paid out on Sep 29, 2023 to shareholders of record at the close of business on Sep 15, 2023.
As of Jun 30, 2023, $491 million remained under the board-authorized share repurchase program.
Business Update
In June, NDAQ agreed to buy Adenza for $10.5 billion in cash and stock. The transaction accelerates Nasdaq’s ability to become a leading provider of capital markets risk and regulatory technology. To finance the acquisition, NDAQ secured about $5 billion through an oversubscribed debt offering.
As part of its focus on prioritizing high-value opportunities, Nasdaq announced plans to sell its European energy trading and clearing business.
Guidance
Nasdaq expects 2023 non-GAAP operating expenses in the range of $1.785 billion to $1.815 billion, compared with the prior expectation of $1.78 billion to $1.84 billion.
Nasdaq forecasts non-GAAP tax rate in the range of 24-26% in 2023.
CME Group Inc. (CME - Free Report) is slated to release second-quarter 2023 earnings onJul 26. The Zacks Consensus Estimate for the second quarter is pegged at $2.18 per share, indicating an increase of 10.7% from the year-ago reported figure.
CME Group delivered an earnings surprise in each of the last four reported quarters.
MarketAxess (MKTX - Free Report) is scheduled to release second-quarter 2023 earnings on Jul 20. The Zacks Consensus Estimate for the second quarter is pegged at $1.58 per share, indicating a decrease of 11.2% from the year-ago reported figure.
MKTX delivered an earnings surprise in each of the last four reported quarters.
Cboe Global Markets, Inc. (CBOE - Free Report) is set to release second-quarter 2023 earnings on Aug 4. The Zacks Consensus Estimate for the second quarter is pegged agt $1.75, indicating an increase of 4.8% from the year-ago reported figure.
CBOE delivered an earnings surprise in three of the last four reported quarters, while missing in one.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Nasdaq (NDAQ) Beats on Q2 Earnings, Tightens Expense View
Nasdaq (NDAQ - Free Report) reported second-quarter 2023 adjusted earnings per share of 71 cents, beating the Zacks Consensus Estimate of 65 cents. The bottom line improved 3% year over year. The improvement was mainly driven by organic growth and solid results at the Solutions segment.
Nasdaq, Inc. Price, Consensus and EPS Surprise
Nasdaq, Inc. price-consensus-eps-surprise-chart | Nasdaq, Inc. Quote
Performance in Detail
Nasdaq’s revenues of $925 million increased 4% year over year. The upside can primarily be attributed to 4% impact from organic growth, including contributions from all segments. It was partially offset by a $2 million decrease from the impact of changes in FX rates and a $2 million decrease from the net impact of an acquisition and divestiture. The top line beat the Zacks Consensus Estimate of $910 million.
Annualized Recurring Revenue (ARR) increased 6% year over year. Annualized SaaS revenues increased 11% and represented 36% of ARR.
Revenues at Trading Services decreased 1% year over year to $250 million. The increase reflects no organic growth and a $2 million negative impact from changes in FX rates.
Revenues at the Solutions segment increased 6% year over year to $647 million, driven by a 6% impact from organic growth.
Adjusted operating expenses were $441 million, up 7% from the year-ago period. The improvement primarily reflects increased expenses associated with the continued investment in people and its businesses to drive long-term growth, partially offset by changes in FX rates. Our estimate for operating expenses was $456 million.
Operating margin of 52% contracted 200 basis points year over year.
The Nasdaq stock market welcomed 62 new company listings in the second quarter of 2023, including 23 initial public offerings. The number of listed companies was 4,106 at quarter end.
Financial Update
Nasdaq had cash and cash equivalents of $5.3 billion as of Jun 30, 2023, up from $0.5 billion at 2022-end. Long-term debt increased to $9.8 billion as of Jun 30, 2023 from $4.7 billion at 2022 end.
Capital Deployment
Nasdaq returned $109 million to shareholders in the second quarter of 2023 through dividends.
The board of directors approved a dividend of 22 cents per share. The dividend will be paid out on Sep 29, 2023 to shareholders of record at the close of business on Sep 15, 2023.
As of Jun 30, 2023, $491 million remained under the board-authorized share repurchase program.
Business Update
In June, NDAQ agreed to buy Adenza for $10.5 billion in cash and stock. The transaction accelerates Nasdaq’s ability to become a leading provider of capital markets risk and regulatory technology. To finance the acquisition, NDAQ secured about $5 billion through an oversubscribed debt offering.
As part of its focus on prioritizing high-value opportunities, Nasdaq announced plans to sell its European energy trading and clearing business.
Guidance
Nasdaq expects 2023 non-GAAP operating expenses in the range of $1.785 billion to $1.815 billion, compared with the prior expectation of $1.78 billion to $1.84 billion.
Nasdaq forecasts non-GAAP tax rate in the range of 24-26% in 2023.
Zacks Rank
Nasdaq carries Zacks Rank #3 (Hold) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
CME Group Inc. (CME - Free Report) is slated to release second-quarter 2023 earnings onJul 26. The Zacks Consensus Estimate for the second quarter is pegged at $2.18 per share, indicating an increase of 10.7% from the year-ago reported figure.
CME Group delivered an earnings surprise in each of the last four reported quarters.
MarketAxess (MKTX - Free Report) is scheduled to release second-quarter 2023 earnings on Jul 20. The Zacks Consensus Estimate for the second quarter is pegged at $1.58 per share, indicating a decrease of 11.2% from the year-ago reported figure.
MKTX delivered an earnings surprise in each of the last four reported quarters.
Cboe Global Markets, Inc. (CBOE - Free Report) is set to release second-quarter 2023 earnings on Aug 4. The Zacks Consensus Estimate for the second quarter is pegged agt $1.75, indicating an increase of 4.8% from the year-ago reported figure.
CBOE delivered an earnings surprise in three of the last four reported quarters, while missing in one.