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Nasdaq (NDAQ) Set to Report Q1 Earnings: What to Expect
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Nasdaq, Inc. (NDAQ - Free Report) is slated to report first-quarter 2024 earnings on Apr 25, before the opening bell. The company delivered an earnings surprise in each of the four reported quarters of 2023.
Factors to Consider
Continued organic revenue growth, strong performance at Market Platforms businesses, data and listing service revenues, and contributions from the Adenza acquisition are likely to have aided Nasdaq’s first-quarter performance.
An increase in international demand is likely to have driven proprietary data revenues. However, lower trading volumes are expected to have weighed on listing revenues.
Non-trading revenues are likely to have benefited from improved results at Market Technology, Market Data and Analytics businesses.
Increased demand for Verafin's fraud and anti-money laundering solutions is likely to have aided the anti-financial crime technology business. Improved trade management services and market technology are likely to have aided the Marketplace Technology business. We expect Marketplace Technology revenues to be $215.5 million.
An increase in compensation and benefits, as well as computer operations & data communications, is likely to have increased total expenses for the to-be-reported quarter. We expect non-GAAP operating expenses to increase 26.8% year over year.
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 per share, indicating a 5.8% decrease from the prior-year reported figure.
Q1 Volumes
Nasdaq reported soft volumes for first-quarter 2024. U.S. equity options volume decreased 4.7% year over year to 773 million contracts. European options and futures volume decreased 31.2% year over year to 15 million contracts.
Revenues per contract for U.S. equity options dropped 7.7% year over year to 12 cents, while the same for European options and futures increased 22% to 50 cents.
Under its cash equities, Nasdaq’s U.S. matched equity volume in the first quarter grossed 116.7 billion shares, down 6.8% from the prior-year quarter’s level. European equity volume increased 7.8% year over year to $213 billion .
In the fourth quarter, there were 4,604 listed companies on Nasdaq compared with 4,874 in the year-ago period. Total listings dropped 3.5% year over year to 5,223.
We expect data and listing services revenues to increase 7.5% to $198.8 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 the stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). But this is not the case, as you can see below.
Earnings ESP: Nasdaq has an Earnings ESP of -1.06% at present. This is because the Most Accurate Estimate of 64 cents is pegged lower than the Zacks Consensus Estimate 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
Cboe Global Markets (CBOE - Free Report) has an Earnings ESP of +0.35% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $2.03 per share, indicating a year-over-year increase of 6.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
CBOE’s earnings beat estimates in each of the last four quarters.
Coinbase Global (COIN - Free Report) has an Earnings ESP of +36.53% and a Zacks Rank #1 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at 89 cents per share, indicating a year-over-year increase of 493.3%.
COIN’s earnings beat estimates in each of the last four quarters.
MarketAxess (MKTX - Free Report) has an Earnings ESP of +0.75% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $1.85 per share, indicating a year-over-year decrease of 5.6%.
MKTX’s earnings beat estimates in three of the last four quarters while missing in one.
Image: Bigstock
Nasdaq (NDAQ) Set to Report Q1 Earnings: What to Expect
Nasdaq, Inc. (NDAQ - Free Report) is slated to report first-quarter 2024 earnings on Apr 25, before the opening bell. The company delivered an earnings surprise in each of the four reported quarters of 2023.
Factors to Consider
Continued organic revenue growth, strong performance at Market Platforms businesses, data and listing service revenues, and contributions from the Adenza acquisition are likely to have aided Nasdaq’s first-quarter performance.
An increase in international demand is likely to have driven proprietary data revenues. However, lower trading volumes are expected to have weighed on listing revenues.
Non-trading revenues are likely to have benefited from improved results at Market Technology, Market Data and Analytics businesses.
Increased demand for Verafin's fraud and anti-money laundering solutions is likely to have aided the anti-financial crime technology business. Improved trade management services and market technology are likely to have aided the Marketplace Technology business. We expect Marketplace Technology revenues to be $215.5 million.
An increase in compensation and benefits, as well as computer operations & data communications, is likely to have increased total expenses for the to-be-reported quarter. We expect non-GAAP operating expenses to increase 26.8% year over year.
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 per share, indicating a 5.8% decrease from the prior-year reported figure.
Q1 Volumes
Nasdaq reported soft volumes for first-quarter 2024. U.S. equity options volume decreased 4.7% year over year to 773 million contracts. European options and futures volume decreased 31.2% year over year to 15 million contracts.
Revenues per contract for U.S. equity options dropped 7.7% year over year to 12 cents, while the same for European options and futures increased 22% to 50 cents.
Under its cash equities, Nasdaq’s U.S. matched equity volume in the first quarter grossed 116.7 billion shares, down 6.8% from the prior-year quarter’s level. European equity volume increased 7.8% year over year to $213 billion .
In the fourth quarter, there were 4,604 listed companies on Nasdaq compared with 4,874 in the year-ago period. Total listings dropped 3.5% year over year to 5,223.
We expect data and listing services revenues to increase 7.5% to $198.8 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 the stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). But this is not the case, as you can see below.
Earnings ESP: Nasdaq has an Earnings ESP of -1.06% at present. This is because the Most Accurate Estimate of 64 cents is pegged lower than the Zacks Consensus Estimate 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
Cboe Global Markets (CBOE - Free Report) has an Earnings ESP of +0.35% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $2.03 per share, indicating a year-over-year increase of 6.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
CBOE’s earnings beat estimates in each of the last four quarters.
Coinbase Global (COIN - Free Report) has an Earnings ESP of +36.53% and a Zacks Rank #1 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at 89 cents per share, indicating a year-over-year increase of 493.3%.
COIN’s earnings beat estimates in each of the last four quarters.
MarketAxess (MKTX - Free Report) has an Earnings ESP of +0.75% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $1.85 per share, indicating a year-over-year decrease of 5.6%.
MKTX’s earnings beat estimates in three of the last four quarters while missing in one.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.