Nasdaq (NDAQ) Beats On Q3 Earnings, Lowers Expense View
Zacks Investment Research | Oct 22, 2019 10:57PM ET
Nasdaq (NASDAQ:NDAQ) reported third-quarter 2019 adjusted earnings per share of $1.27, beating the Zacks Consensus Estimate of $1.21 by nearly 5%. The bottom line increased 10.4% year over year.
Nasdaq witnessed growth in non-trading revenues. Strategic acquisitions contributed to revenues in the quarter. The company continued to deliver solid growth in its expanded technology and analytics offerings while benefiting from rising equities market share and a dynamic trading and IPO environment.
Performance in Detail
Nasdaq’s revenues of $632 million increased 5.3% year over year. The upside was primarily attributable to organic growth and a positive $12 million impact from the addition of revenues from the acquisitions of Cinnober and Quandl. However, a $10 million negative impact from a divestiture and a $7 million unfavorable impact from changes in foreign exchange rates were partial offsets. Organic revenues grew 6%. The top line beat the Zacks Consensus Estimate by 0.4%.
Adjusted operating expenses were $317 million, up 2% from the year-ago period owing to organic expense increase and a $1 million increase from the net impact of acquisitions and divestitures, partially offset by a $6 million favorable impact from changes in foreign exchange rates.
Operating margin of 50% expanded 200 basis points year over year.
In the U.S. market, Nasdaq welcomed 66 new listings, including 41 IPOs. Nasdaq's European exchanges added eight new listings, including four IPOs, taking the Nordic and Baltic listed companies tally to1,028 as on Sep 30, 2019, an increase of 2% year over year.
Nasdaq, Inc. Price, Consensus and EPS Surprise
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