NASDAQ OMX Group, Inc. Earnings Cheat Sheet: Weak Revenue Lead to Profit Decline

S&P 500 (NYSE:SPY) component The NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) posted a decrease in profit as revenue declined. NASDAQ OMX Group Inc. delivers trading, securities listing, exchange technology and public company services across six continents.

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The NASDAQ OMX Group Earnings Cheat Sheet for the Second Quarter

Results: Net income for the diversified investments company fell to $92 million (51 cents per share) vs. $96 million (46 cents per share) a year earlier. This is a decline of 4.2% from the year earlier quarter.

Revenue: Fell 8.7% to $699 million from the year earlier quarter.

Actual vs. Wall St. Expectations: NDAQ reported adjusted net income of 62 cents per share. By that measure, the company beat the mean estimate of 60 cents per share. It beat the average revenue estimate of $413.1 million.

Quoting Management: Bob Greifeld, Chief Executive Officer and President, NASDAQ OMX said: “NASDAQ OMX continues to deliver record earnings growth, proving the resiliency of our business model. This was accomplished with the strength of our top line as net revenues grew for the third consecutive quarter and are up 11% for the first half of the year when compared to the same period last year. With a sharp eye on execution we’ve achieved double digit growth in net revenues during a time when ongoing economic uncertainty has created a challenging environment for many of our volume related businesses. We are confident in our ability to continue growing the business organically and to effectively leverage the success which is borne out by our record financial performance.”

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the first quarter, net income rose 70.5% from the year earlier, while the figure increased more than threefold in the fourth quarter of the last fiscal year, 68.3% in the third quarter of the last fiscal year and 39.1% in the second quarter of the last fiscal year.

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the first quarter, by 4 cents in the fourth quarter of the last fiscal year, and by 3 cents in the third quarter of the last fiscal year.

Revenue fell last quarter after seeing a rise the quarter before. Revenue dropped 6.9% to $817 million in the first quarter from the year earlier.

Competitors to Watch: NYSE Euronext (NYSE:NYX), IntercontinentalExchange, Inc. (NYSE:ICE), CBOE Holdings, Inc (NASDAQ:CBOE), CME Group Inc. (NASDAQ:CME), MarketAxess Holdings Inc. (NASDAQ:MKTX), Forestar Group Inc. (NYSE:FOR) and London Stock Exchange Group Plc (NYSE:LSE).

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(Source: Xignite Financials)