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Nasdaq (NDAQ) Posts Mixed Q1 Volumes, March ADV Disappoints

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Nasdaq, Inc. (NDAQ - Free Report) reported mixed volumes for first-quarter 2019. While U.S. equity options volume decreased 14.3% year over year to 406 million contracts, European options and futures volume increased 0.4% year over year to 22.4 million contracts.

Though revenues per contract for U.S. equity options improved 7.1% year over year to 15 cents, the same for European options and futures deceased 10.6% to 42 cents.

Under its cash equities, Nasdaq’s U.S. matched equity volume in the first quarter grossed 90.6 billion shares, up 2.3% from the prior-year quarter. European equity volume decreased 18.8% year over year to $211 billion. U.S. fixed income volume traded declined 47.3% year over year to $2.7 trillion whereas European fixed income volume increased 12% year over year to 9.4 million.

In the first quarter, there were 3,689 listed companies on Nasdaq compared with 3,579 in the year-ago period. Total listings grew 3.1% year over year to 4,077.

Nasdaq continues to witness growth in its index and analytics businesses, followed by moderate growth in its exchange data products across U.S. and Nordic equities, options and fixed income businesses. The company is ramping up its non-transaction revenue base, which includes market technology, listing and information revenues. It is also expanding technology and analytics offerings. Nasdaq remains focused on its core special marketplace platform businesses but intends to lower capital resources for investment in businesses that do not offer considerable growth for the company.

Shares of Nasdaq gained 7.7% in the first quarter of 2019 compared with the industry's decrease of 1.7%.

The Zacks Consensus Estimate for earnings in the first quarter is pegged at $1.20, indicating 3.2% year-over-year decline. The company is set to report first-quarter 2018 earnings on Apr 24, before market open.

Our proven model does not conclusively show that the company is likely to beat estimates in the to-be-reported quarter. This is because the combination of its Zacks Rank #3 (Hold) and Earnings ESP of 0.00% makes prediction difficult.

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

Concurrently, Nasdaq reported disappointing March volumes. U.S. equity options volume declined 9% year over year to 141 million contracts. European options and futures volume was 8.2 million contracts, down 2.4% year over year.

Recently, securities exchanges, namely CME Group Inc. (CME - Free Report) , MarketAxess Holdings Ltd. (MKTX - Free Report) and Cboe Global Markets, Inc. (CBOE - Free Report) also posted their respective monthly volumes.

CME Group’s ADV declined 8% year over year in March as volumes declined across all six product lines. MarketAxess reported trading volume of $182.7 billion for March. Total volume included $96.8 billion in U.S. high-grade volume, $81.8 billion in other credit volume and $4.0 billion in liquid products volume. Cboe Global reported weak average daily volume (ADV) for March 2019. Total ADV of 7.3 million contracts declined 13.2% year over year due to weak performance across the business lines — Options, Futures, U.S. Equities and European Equities.

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