NYSE Euronext Earnings: Revenue and Profit 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 First Quarter
Results: Net income for NYSE Euronext fell to $87 million (34 cents per share) vs. $155 million (59 cents per share) a year earlier. This is a decline of 43.9% from the year-earlier quarter.
Revenue: Fell 17.1% to $952 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: NYSE Euronext reported adjusted net income of 47 cents per share. By that measure, the company fell short of mean estimate of 49 cents per share. It beat the average revenue estimate of $610.5 million.
Quoting Management: “Our first quarter results reflect the challenging operating environment which carried over into 2012 and will continue to result in near-term headwinds,” said Duncan L. Niederauer, CEO, NYSE Euronext. “Looking ahead into 2013 and 2014, we are focused on creating value by enhancing the underlying earnings power of the Company and solidly executing on the three core pillars of our earnings growth strategy outlined at our investor day: capturing growth opportunities in new markets and leveraging inter-asset class opportunities; delivering efficiencies through disciplined cost management and optimizing our shared services infrastructure; and strategically deploying our capital.”
The company’s net income has fallen for two quarters in a row. In the fourth quarter of the last fiscal year, net income fell 17.8% from the year-earlier quarter.
After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the fourth quarter of the last fiscal year, it topped the mark by one cent, and in the third quarter of the last fiscal year, it was ahead by 2 cents.
A year-over-year revenue decrease last quarter breaks a two-quarter streak of revenue increases. Revenue rose 0.9% in the fourth quarter of the last fiscal year and 19.8% in the third quarter of the last fiscal year.
Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the second quarter is 57 cents per share, down from 66 cents ninety days ago. For the fiscal year, the average estimate has moved down from $2.73 a share to $2.40 over the last ninety days.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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