Nasdaq OMX Group Inc. NDAQ has been focusing thoroughly recognized technologies to help navigate the global capital markets towards potent, transparent and low-cost trading platforms. Strategic acquisitions in the non-transaction space over the past years further position the company optimally for long-term growth, particularly, as the industry is becoming more focused on effective risk management solutions.
Nasdaq has been helping expand global exchanges with superior trading and clearing infrastructure, and build them as leading integrated multi-asset exchanges, thereby creating a niche for itself in the less-competitive zone.
Additionally, the rising focus on the rapidly growing exchange-traded products (ETPs), to build a strong global index business, is evident from Nasdaq’s strengthened distribution, technology and product generation capacities in this space.
Growth through diversification is crucial for Nasdaq for countering risks from stiff competition, currency fluctuations and sluggish trading volumes. Nevertheless, the stock does have a modest history of keeping its earnings streak alive in the last four quarters, making for an average surprise of just about 2.83%.
Currently, Nasdaq has a Zacks Rank #2 (Buy), but that could definitely change following its earnings report that has just been released. The key takeaways from this immediate announcement are highlighted below:
Earnings: Nasdaq beat on earnings by 2.3%. Our consensus called for EPS of 86 cents, and the company reported EPS of 88 cents.
Revenue: Revenues surpassed our estimate. Our consensus called for revenues of $524 million, and the company reported revenues of $529 million. Organic revenue growth, excluding currency fluctuations, stood at 9%.
Key Stats to Note: Core operating income stands impressive, increasing 10% year over year in the reported quarter.
Listings business improved with about 89 new listings and 42 IPOs in the quarter.
Debt obligations during the quarter increased 5.1% to $2.41 billion from nearly $2.30 billion at 2014-end level.
Nasdaq paid back $418 million to its shareholders during the first nine months.
Check back later for our full write up on this NDAQ earnings report later!
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