Nasdaq Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Nasdaq OMX Group (NASDAQ:NDAQ) will unveil its latest earnings tomorrow, Wednesday, July 25, 2012. 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 profit of 60 cents per share, a decline of 3.2% 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 68 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 62 cents during the last month. For the year, analysts are projecting net income of $2.52 per share, a decline of 0.4% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the first quarter, it reported profit of 61 cents per share against a mean estimate of 63 cents. Two quarters ago, it beat expectations by one cent with net income of 62 cents.

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Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.64 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.

A Look Back: In the first quarter, profit fell 18.3% to $85 million (48 cents a share) from $104 million (57 cents a share) the year earlier, missing analyst expectations. Revenue fell 2% to $801 million from $817 million.

Stock Price Performance: Between April 24, 2012 and July 23, 2012, the stock price fell $2.87 (-11.47%), from $25.02 to $22.15. The stock price saw one of its best stretches over the last year between January 17, 2012 and January 25, 2012, when shares rose for seven straight days, increasing 5.6% (+$1.38) over that span. It saw one of its worst periods between July 2, 2012 and July 10, 2012 when shares fell for six straight days, dropping 5.4% (-$1.23) over that span.

Key Stats:

The company is trying to use this earnings announcement to rebound from income declines in the past two quarters. Net income dropped 40.9% in the fourth quarter of the last fiscal year and then again in the first quarter.

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 3.8% in the fourth quarter of the last fiscal year and 26% in the third quarter of the last fiscal year before falling in the first quarter.

Analyst Ratings: With nine 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.

Wall St. Revenue Expectations: Analysts are projecting a decline of 1.4% in revenue from the year-earlier quarter to $410 million.

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

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