NASDAQ OMX Group Inc.
) introduced a multi-index platform with multiple asset-classes
known as NASDAQ Global Index Family. This new platform will be
developing as much as 24,000 benchmark indices, thereby
accounting for more than 98% of the global equity investment
Accordingly, NASDAQ has immediately initiated about 4,000
indexes calculated in US dollars, while the remaining will be
phased out over time in varied currencies. The NASDAQ Global
Index Family is designed to cover approximately 9,000 securities
that represent a cumulative float-adjusted market capitalization
of more than $32 trillion.
Moreover, the global securities on the NASDAQ Global Index
Family are diversified into their respective market segment,
region, country, size and sector. Subsequently, the company's new
index platform will have equity indexes across the Americas,
Europe, Asia-Pacific and Middle East-Africa.
Additionally, NASDAQ has enhanced the performance of the
global index family products through a transparent, high-tech and
efficient operational structure along with its 10-year historical
data. Hence, such a vivid index offering will not only provide
NASDAQ with ample scope for new business growth, but it will also
help it maintain competitive edge in the global equity space.
Over the last couple of years, NASDAQ has been vigorously
focusing on amplifying its business profile through expansion
into international markets in an attempt to counter the
competitive forces and gain dynamism. The company's strategic
efforts to enhance fraying market position are also crucial since
the recent reforms in the US has led arch-rivals in the
derivative and equity spaces such as
NYSE Euronext Inc.
CME Group Inc.
), to seek greener pastures in the emerging and rapidly
developing economies. This leaves no reason for NASDAQ to lag
behind the market moves.
In October this year, NASDAQ reported third-quarter 2012
operating earnings per share of 62 cents, which surpassed the
Zacks Consensus Estimate by a couple of cents. However, it fell
shy of the prior-year quarter's earnings, of 67 cents, by a
nickel. The year-over-year decline was primarily attributable to
reduced top line, which lay marred by significantly weak trading
volumes across businesses and unfavorable impact from foreign
For the fourth quarter of 2012, the Zacks Consensus Estimate
pegs NASDAQ earnings at 62 cents per share, down about 1% over
the prior-year quarter. For 2012, earnings are expected to
decline by around 2% over 2011 to $2.49 per share. Over the last
30 days, 3 of the 13 analysts have reduced their estimates
downwards, while no upward revision was witnessed.
NASDAQ carries a Zacks Rank #3 that implies a short-term Hold
rating, while the long-term recommendation stands at Neutral.
CME GROUP INC (CME): Free Stock Analysis
NASDAQ OMX GRP (NDAQ): Free Stock Analysis
NYSE EURONEXT (NYX): Free Stock Analysis
To read this article on Zacks.com click here.