NASDAQ OMX Group Earnings: Short of Wall Street Expectations
Falling revenue did not prevent S&P 500 (NYSE:SPY) component The NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) from reporting a profit boost in the first quarter. NASDAQ OMX Group Inc. delivers trading, securities listing, exchange technology and public company services across six continents.
The NASDAQ OMX Group Earnings Cheat Sheet for the First Quarter
Results: Net income for the diversified investments company rose to $103 million (56 cents/share) vs. $61 million (28 cents/share) YoY. A rise of 68.9% from the year earlier quarter.
Revenue: Fell 45.7% to $415 million YoY.
Actual vs. Wall St. Expectations: NDAQ fell short of the mean analyst estimate of 61 cents/share. Estimates ranged from 57 cents per share to 65 cents per share.
Quoting Management: Bob Greifeld, Chief Executive Officer and President, NASDAQ OMX said: “We’re firing on all cylinders as each of our business segments continue to show solid growth. The discipline we have shown in managing our business is allowing us to pursue game-changing opportunities in our industry. As this plays out, we will be methodical in our approach to managing the business to continue to deliver for our shareholders.”
The company has now seen net income rise in four-straight quarters. In the fourth quarter of the last fiscal year, net income rose 218.6% while the figure climbed 68.3% in the third quarter of the last fiscal year and 39.1% four quarters ago from the year earlier.
Over the last five quarters, revenue has fallen an average of 14.1% year over year. The biggest drop came in the most recent quarter, when revenue fell 45.7% from the year earlier quarter.
Today’s Performance: Shares of NDAQ are trading at $27.40 pre-market, unchanged from the previous close.