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Nasdaq (NDAQ) Posts Mixed Q2 Volumes, Revenues Per Contract

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Nasdaq, Inc. (NDAQ - Free Report) has reported mixed volumes for second-quarter 2018. While U.S. equity options volume increased 8% year over year to 417 million contracts, European options and futures volumes registered 21.9 million contracts, down 1.4% year over year.

However, revenues per contract for U.S. equity options remained flat year over year at 15 cents, although the same for European options and futures expanded 12.8% to 44 cents.

Under its cash equities, Nasdaq’s U.S. matched equity volume in the first quarter totaled 83.8 billion shares, up 5.6% from the prior-year quarter. While the European equity volume rose 5.5% year over year to $232 billion. Again, the U.S. Fixed income volume contracted 13% year over year to $4,134 billion. Whereas the European fixed income volume was 7.5 million contracts, up 7.1% year over year.

Nasdaq’s strategic initiatives have always accelerated growth. Improvement in non-transaction revenue base including market technology, listing and information revenues has been driving revenues. Management’s medium-term outlook calls for 8-11% growth.

Moreover, strategic acquisitions have been helping the company diversify as well as add capabilities to its portfolio. The organization is also intensifying its focus on Nasdaq Private Market Alternatives and the Nasdaq Ventures to ramp up its growth profile over a longer term.

In the second quarter, there were 3,632 listed companies on Nasdaq compared with 3,512 in the year-ago period. Total listings grew 4% over the year-earlier quarter to 4,021.

Shares of Nasdaq have rallied 18.7% in a year, outperforming the industry's increase of 5%.

The Zacks Consensus Estimate for second-quarter bottom line is pegged at $1.18, reflecting a 15.7% year-over-year climb on 2.9% higher revenues. The company is set to report second-quarter 2018 earnings on Jul 25 before the market opens.

Our proven model does not conclusively show that the company is likely to beat estimates this to-be-reported quarter. This is because though the stock’s Zacks Rank #2 (Buy) increases the predictive power of ESP, its combination with an Earnings ESP of -2.27% leaves surprise prediction inconclusive as the company needs a positive ESP to be confident about an earnings surprise.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Concurrently, Nasdaq reported mixed June volumes. The U.S. equity options volume inched up nearly 1.5% year over year to 139 million contracts. However, the European options and futures volume was 6.6 million contracts, down 5.7% year over year.

Recently, securities exchanges such as CBOE Holdings Inc. (CBOE - Free Report) , CME Group Inc. (CME - Free Report) and MarketAxess Holdings Ltd. (MKTX - Free Report) also posted respective monthly volumes. While CBOE Global Markets’ June ADV of 7.3 million contracts nudged up 1.6% year over year, CME Group’s ADV of 18.4 million contracts rose 12% year over year. MarketAxess has reported a trading volume of $147.8 billion for June.

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