NASDAQ Earnings: Two-Quarter Streak of Profit Declines SNAPPED

S&P 500 (NYSE:SPY) component The NASDAQ OMX Group Inc. (NASDAQ:NDAQ) reported its results for the second quarter. NASDAQ OMX Group delivers trading, securities listing, exchange technology, and public company services across six continents.

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The NASDAQ OMX Group Inc. Earnings Cheat Sheet

Results: Net income for The NASDAQ OMX Group Inc. rose to $93 million (53 cents per share) vs. $92 million (51 cents per share) in the same quarter a year earlier. This marks a rise of 1.1% from the year-earlier quarter.

Actual vs. Wall St. Expectations: The NASDAQ OMX Group Inc. fell short of the mean analyst estimate of 60 cents per share.

Quoting Management: Robert Greifeld, NASDAQ OMX’s CEO, commented, “The second quarter saw a continuation of solid growth in our recurring and subscription-based businesses. Strong growth in our Global Market Data, Access Services and Global Index businesses offset continued weak trends in our transaction-based businesses. This performance was a direct result of our continued focus on cost management, and the execution of our strategy to build strong, recurring and subscription-based revenue businesses that can drive growth, despite the trading environment.”

Key Stats:

The profit increase last quarter interrupts a two-quarter year-over-year profit decreases. In the first quarter, net income fell 18.3% while the figure dropped in the fourth quarter of the last fiscal year.

The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 2 cents with net income of 61 cents versus a mean estimate of net income of 63 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 70 cents a share to 64 cents over the last ninety days. At $2.52 per share, the average estimate for the fiscal year has fallen from $2.71 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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