NYSE Euronext Earnings: Profit Falls Behind Revenue Decline

S&P 500 (NYSE:SPY) component NYSE Euronext (NYSE:NYX) posted a decrease in profit as revenue declined. NYSE Euronext provides securities listing, trading, market data products, and software and technology services.

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NYSE Euronext Earnings Cheat Sheet for the Third Quarter

Results: Net income for NYSE Euronext fell to $108 million (44 cents per share) vs. $200 million (76 cents per share) a year earlier. This is a decline of 46% from the year-earlier quarter.

Revenue: Fell 28.3% to $902 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: NYSE Euronext beat the mean analyst estimate of 41 cents per share. It beat the average revenue estimate of $610.5 million.

Quoting Management: “In the third quarter, we continued to execute against our strategy and deliver on our multi-year growth commitments, known as Project 14, which we believe will drive a step-up in the underlying earnings power of the company in the coming years, even if trading volumes remain lackluster,” said Duncan L. Niederauer, CEO, NYSE Euronext.

Key Stats:

The company has now seen net income fall for four straight quarters. In the second quarter, net income fell 18.8% while the figure fell 43.9% in the first quarter and 17.8% in the fourth quarter of the last fiscal year.

Revenue has fallen for the last three quarters in a row. In the second quarter, revenue declined 9.7% to $986 million while the figure fell 17.1% in the first quarter from the year earlier.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 51 cents versus a mean estimate of net income of 50 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 55 cents a share to 49 cents over the last ninety days. At $1.89 per share, the average estimate for the fiscal year has fallen from $2.02 ninety days ago.

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

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