Nasdaq OMX Group Earnings: Here’s Why Shares are Down Now

Nasdaq OMX Group Inc. (NASDAQ:NDAQ) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.15%.

Nasdaq OMX Group Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 3.13% to $0.62 in the quarter versus EPS of $0.64 in the year-earlier quarter.

Revenue: Decreased 45.2% to $451 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Nasdaq OMX Group Inc. reported adjusted EPS income of $0.62 per share. By that measure, the company missed the mean analyst estimate of $0.63. It beat the average revenue estimate of $441.43 million.

Quoting Management: “Our strategy is focused on becoming an entrenched provider of corporate, trading, technology, and information products and services that allow our customers to more effectively navigate today’s global capital markets,” said Bob Greifeld, CEO, NASDAQ OMX. “Essential to that strategy has been the expansion of the depth and breadth of asset classes, products and markets we offer as well as extending our presence in adjacent businesses that are relevant to the communities where we operate to facilitate a deepening of our client relationships.”

Key Stats (on next page)…

Revenue decreased 39.38% from $744 million in the previous quarter. EPS decreased 3.13% from $0.64 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.68 to a profit $0.67. For the current year, the average estimate has moved down from a profit of $2.66 to a profit of $2.63 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , , ,  

More from The Cheat Sheet