Nasdaq OMX Group Inc
) reported third-quarter 2013 operating earnings per share of 66
cents. The result beat the Zacks Consensus Estimate as well as
the year-ago earnings figure by 4 cents.
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Nasdaq's total net operating exchange revenues increased 23% year
over year to $506 million, and beat the Zacks Consensus Estimate
of $502 million. On a constant currency basis and excluding
acquisitions, revenues grew 4% year over year in the reported
The growth was primarily attributable to improved revenues from
listing, information, technology and derivatives, all driven by
both organic and inorganic attributes. Moreover, revenues from
market services witnessed improvement in the quarter.
net exchange revenues for the quarter increased 8.1% from the
year-ago period to $200 million, attributable to lower cost of
revenues for the reported quarter were $57 million, up 3.6% from
the year-ago period, owing to improved performance in the
European markets. Revenues from
improved 19.2% to $119 million, whereas
revenues stood at $131 million, surging 79% from the year-ago
During the reported quarter, Nasdaq's order intakes improved to
$119 million from $34 million in the year-ago quarter.
Additionally, total order value (the value of orders signed that
have not been recognized as revenues) increased to $579 million
from $540 million in the prior-year quarter. New listings totaled
64 against 44 in the year-ago quarter.
Meanwhile, on a non-GAAP basis, operating expenses stood at $304
million, up 32% from the year-ago period. The upside was due to
expenses related to the acquisitions of Thomson Reuters' IR, PR
and Multimedia businesses and the eSpeed electronic fixed income
platform. Consequently, operating margin contracted 400 basis
points year over year to 40%.
As of Sep 30, 2013, Nasdaq had cash and cash equivalents of $381
million, down from $582 million at the end of 2012. Debt
obligations of Nasdaq stood at $2.67 billion, up from $1.84
billion at 2012-end. However, Nasdaq paid $98 million of debt in
the reported quarter.
Total assets of Nasdaq increased to $12.5 billion from $9.13
billion at 2012-end, while total equity improved to $6.1 billion
from $5.2 billion at 2012-end.
Management narrowed core operating expense projection to
$1.075-1.090 billion from $1.070-1.100 billion guided earlier.
Additionally, the company expects approximately $45 million of
incremental expenses from new initiative spending (down from the
earlier range of $50-$60 million). Including these charges, total
expenses are projected in the range of $1.120-$1.135 billion,
narrowed from the guidance of $1.12-1.16 billion provided
Concurrently, the board of directors of Nasdaq declared a cash
dividend of 13 cents per share, which is payable on Dec 27, 2013
to shareholders of record as on Dec 13, 2013.
Other Strong Performers in the Finance Space
American Express Co.
) reported its third-quarter 2013 operating earnings per share of
$1.25. The result comfortably surpassed both the Zacks Consensus
Estimate of $1.22 and the year-ago quarter earnings of $1.09 a
Capital One Financial Corp.
) third-quarter 2013 earnings per share of $1.86 outpaced the
Zacks Consensus Estimate of $1.77.
Euronet Worldwide Inc
) reported third-quarter operating net income of 51 cents per
share, beating the Zacks Consensus Estimate of 48 cents and the
year-ago figure of 38 cents.
Nasdaq currently carries a Zacks Rank #4 (Sell).