Nasdaq OMX Group Earnings on Deck

S&P 500 (NYSE:SPY) component Nasdaq OMX Group (NASDAQ:NDAQ) will unveil its latest earnings on Wednesday, October 24, 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 net income of 60 cents per share, a decline of 10.4% 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 64 cents. Between one and three months ago, the average estimate moved down. It has risen from 59 cents during the last month. Analysts are projecting profit to rise by 1.2% compared to last year’s $2.50.

Last quarter, the company came in at profit of 64 cents per share against a mean estimate of net income of 60 cents per share, beating estimates after missing them in the previous quarter. In the first quarter, it missed forecasts by 2 cents.

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Stock Price Performance: Between July 25, 2012 and October 18, 2012, the stock price rose $1.70 (7.4%), from $22.87 to $24.57. 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.

Wall St. Revenue Expectations: Analysts are projecting a decline of 6% in revenue from the year-earlier quarter to $411.7 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.43 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. The company regressed in this liquidity measure from 1.64 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 14.9% to $987 million while assets rose 0.3% to $1.41 billion.

Key Stats:

Last quarter’s earnings rise was a switch from preceding drops, so the upcoming earnings announcement is a chance to build on last quarter’s result. After net income declines in the fourth quarter of the last fiscal year and first quarter, profit rose in the second quarter.

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

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

A Look Back: In the second quarter, profit rose 1.1% to $93 million (53 cents a share) from $92 million (51 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 1.8% to $823 million from $838 million.

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

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