NYSE Euronext Earnings: Here’s Why the Stock is Down Now

NYSE Euronext, Inc. (NYSE:NYX) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.08%.

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NYSE Euronext, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 21.28% to $0.57 in the quarter versus EPS of $0.47 in the year-earlier quarter.

Revenue: Decreased 36.97% to $600 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: NYSE Euronext, Inc. reported adjusted EPS income of $0.57 per share. By that measure, the company beat the mean analyst estimate of $0.56. It missed the average revenue estimate of $604.96 million.

Quoting Management: “Our first quarter results reflected improved trading volumes in our European Derivatives franchise and the benefit of the actions we have taken to strengthen the fundamental earnings power of the Company over the past year,” said Duncan L. Niederauer, CEO, NYSE Euronext. “At the same time, we are moving forward with the requisite approvals and integration planning for the proposed combination with Intercontinental Exchange. The Hart-Scott Rodino waiting period expired in February, we are actively engaged with our regulators in Europe to move all appropriate approvals forward, and we look forward to our respective shareholder votes on the acquisition in early June.”

Key Stats (on next page)…

Revenue decreased 33.99% from $909 million in the previous quarter. EPS increased 32.56% from $0.43 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.56 to a profit $0.57. For the current year, the average estimate has moved up from a profit of $2.24 to a profit of $2.32 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)