NYSE Euronext Earnings: Net Income Declines Year over Year

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

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NYSE Euronext Earnings Cheat Sheet for the Second Quarter

Results: Net income for the diversified investments company fell to $154 million (59 cents per share) vs. $184 million (70 cents per share) a year earlier. This is a decline of 16.3% from the year earlier quarter.

Revenue: Fell 12.4% to $1.09 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: NYX reported adjusted net income of 61 cents per share. By that measure, the company beat the mean estimate of 60 cents per share. It beat the average revenue estimate of $652.7 million.

Quoting Management: “Our solid results in the second quarter reflect our focus on revenue diversification, disciplined cost management and balance sheet strength as we continue to execute against our long-term strategy in an extremely challenging environment,” said Duncan L. Niederauer, CEO, NYSE Euronext. “NYSE Liffe U.S. continues to gain traction with the launch of Eurodollar and U.S. treasury futures, we closed the sale of stakes in NYSE Amex Options and we were the global leader in IPOs for the second consecutive quarter, with a growing share of technology IPOs selecting NYSE. Lastly, our technology services business, which grew revenue 14% year-over-year, launched the first cloud computing platform in financial services.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 8 cents in the first quarter, by 2 cents in the fourth quarter of the last fiscal year, and by 3 cents in the third quarter of the last fiscal year.

Margins rose in the first quarter after falling the quarter before. Gross margin rose 8.1 percentage points to 60.5% from the quarter earlier quarter. In the fourth quarter of the last fiscal year, the figure rose 0.4 percentage point to 59.1% from the year earlier quarter.

Over the last five quarters, revenue has fallen an average of 4.8% year over year. The biggest drop came in the most recent quarter, when revenue fell 12.4% from the year earlier quarter.

Competitors to Watch: IntercontinentalExchange, Inc. (NYSE:ICE), NASDAQ OMX Group, Inc. (NASDAQ:NDAQ), CME Group Inc. (NASDAQ:CME), CBOE Holdings, Inc (NASDAQ:CBOE), Deutsche Boerse AG (DB1), MarketAxess Holdings Inc. (NASDAQ:MKTX), Forestar Group Inc. (NYSE:FOR), Knight Capital Group Inc. (NYSE:KCG), and London Stock Exchange Group Plc (NYSE:LSE).

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(Source: Xignite Financials)