Nasdaq OMX Group Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Nasdaq OMX Group (NASDAQ:NDAQ) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. NASDAQ OMX Group delivers trading, securities listing, exchange technology, and public company services across six continents.

Nasdaq OMX Group Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 61 cents per share, a decline of 1.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 62 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 61 cents during the last month. Analysts are projecting profit to rise by 2% versus last year to $2.48.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported profit of 62 cents per share against a mean estimate of net income of 60 cents, and the quarter before, the company exceeded forecasts by 4 cents with profit of 64 cents versus a mean estimate of net income of 60 cents.

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A Look Back: In the third quarter, profit fell 19.1% to $89 million (52 cents a share) from $110 million (61 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 21.5% to $743 million from $946 million.

Here’s how Nasdaq OMX Group traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

ndaq

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.65 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Wall St. Revenue Expectations: On average, analysts predict $411.9 million in revenue this quarter, a decline of 2.4% from the year-ago quarter. Analysts are forecasting total revenue of $1.65 billion for the year, a decline of 2.4% from last year’s revenue of $1.69 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 2% in the first quarter and 1.8% in second quarter before falling again in the third quarter.

The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 19.3% over the past four quarters.

Analyst Ratings: With six analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

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