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Nasdaq Reports Mixed Volumes & Revenues Per Contract in Q3

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Nasdaq, Inc. (NDAQ - Free Report) recently reported mixed volumes for third-quarter 2018. While U.S. equity options volume increased 11.8% year over year to 407 million contracts, European options and futures volumes registered 18.1 million contracts, down 5.7% year over year.

Revenues per contract for U.S. equity options improved 7.1% year over year to 15 cents, although the same for European options and futures deceased 5.9% to 48 cents.

Under its cash equities, Nasdaq’s U.S. matched equity volume in the third quarter grossed 77.8 billion shares, up 12.6% from the prior-year quarter. European equity volume decreased 7.7% year over year to $204 billion. Again, U.S. fixed income volume traded contracted 19.6% year over year to $3.2 trillion. Whereas the European fixed income volume was 7.9 million contracts, down 16.2% year over year.

In the third quarter, there were 3,669 listed companies on Nasdaq compared with 3,525 in the year-ago period. Total listings grew 4.4% over the year-earlier quarter to 4,059.

Nasdaq has consistently pursued strategic initiatives to expedite its growth. Apart from subscription and revenues in trading business, the company is ramping up its non-transaction revenue base, which includes market technology, listing and information 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.

Shares of Nasdaq lost 6% during the third quarter of 2018, against the industry's increase of 1.4%.


The Zacks Consensus Estimate for third-quarter bottom line is pegged at $1.16, reflecting a 9.4% year-over-year rise on 0.5% higher revenues. The company is set to report third-quarter 2018 earnings on Oct 24 before the market opens.

Our proven model does not conclusively show that the company is likely to beat estimates in the to-be-reported quarter. This is because of the stock’s Zacks Rank #4 (Sell) that decreases the predictive power of ESP and an Earnings ESP of 0.00%.

Concurrently, Nasdaq reported mixed September volumes. U.S. equity options volume expanded 8.6% year over year to 126 million contracts. However, European options and futures volume was 6.6 million contracts, down 14.5% 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) posted their monthly volumes. While CBOE Global Markets’ September ADV of 7.3 million contracts nudged up 3.1% year over year, CME Group’s ADV of 17.5 million contracts per day grew 3% year over year. MarketAxess has reported a trading volume of $136.6 billion for the month.
 

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

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