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Nasdaq (NDAQ) Q2 Earnings Beat Estimates on Higher Revenues
July 26, 2017

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Have you been eager to see how Nasdaq, Inc. (NDAQ - Free Report) , performed in Q2 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 $1.02 per share, beating the Zacks Consensus Estimate of 96 cents. Earnings improved 12.1% 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 96 cents  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 4.5% in the trailing four quarters.

Revenues Beat

Nasdaq’s revenues of record $602.0 million in the quarter increased 7.7% year over year. The Zacks Consensus Estimate was $595.3 million.

Key Takeaways

Adjusted operating expenses were $315 million in the reported quarter, up 5% year over year.

As of Jun 30, 2017, Nasdaq achieved $60 million in annualized run-rate cost synergies. Additionally, the company also estimated $10-$20 million in additional synergies to be realized post completion of other platform consolidations.

The Nasdaq Stock Market welcomed 64 new listings during the second quarter of 2017, 36 of which were IPOs.

As of Jun 30, 2017, debt decreased 15.1% over 2016 end level to $3.1 billion.

The company expects 2017 non-GAAP operating expense in the range of $1,260–$1,290 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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