NYSE Euronext Earnings: BEATS Wall Street Expectations

S&P 500 (NYSE:SPY) component NYSE Euronext (NYSE:NYX) reported its results for the second quarter. NYSE Euronext provides securities listing, trading, market data products, and software and technology services.

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NYSE Euronext Earnings Cheat Sheet

Results: Net income for NYSE Euronext fell to $125 million (49 cents per share) vs. $154 million (59 cents per share) a year earlier. This is a decline of 18.8% from the year-earlier quarter.

Revenue: Fell 9.7% to $986 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: NYSE Euronext reported adjusted net income of 51 cents per share. By that measure, the company beat the mean estimate of 50 cents per share. It beat the average revenue estimate of $610.5 million.

Quoting Management: “We made good progress in executing against our strategy to unlock the inherent value of our community,” said Duncan L. Niederauer, CEO, NYSE Euronext. “We have realigned our client facing and product teams to create a generalist sales force that brings to bear our full-suite of solutions for our clients. We have given notice that we will fully insource clearing and launch NYSE Clearing in June 2013, which will provide us with cost savings and ultimately provide new revenue and better position the Company for the OTC opportunity. Lastly, we made significant headway with our NYSE Liffe U.S. platform with the launch of our GCF repo futures product which fills the increasing market need for a reliable and transparent benchmark for bank funding costs.”

Key Stats:

The company’s net income has now fallen for three straight quarters. In the first quarter, net income fell 43.9% from the year earlier, while the figure fell 17.8% in the fourth quarter of the last fiscal year.

The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 47 cents versus a mean estimate of net income of 49 cents per share.

Revenue has declined for two quarters in a row. In the first quarter, revenue declined 17.1% to $952 million from the year-earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the third quarter has fallen from 62 cents per share to 55 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $2.11 per share, down from $2.38 ninety days ago.

Competitors to Watch: IntercontinentalExchange, Inc., NASDAQ OMX Group, Inc., CME Group Inc., CBOE Holdings, Inc, Deutsche Boerse AG, MarketAxess Holdings Inc., Forestar Group Inc., Knight Capital Group Inc., and London Stock Exchange Group Plc.

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

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