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Nasdaq (NDAQ) Beats on Q4 Earnings Estimates

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Have you been eager to see how Nasdaq, Inc. (NDAQ - Free Report) , performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this NY-based major exchange operator’s earnings release this morning:

An Earnings Beat

Nasdaq reported adjusted earnings per share of 95 cents per share, beating the Zacks Consensus Estimate of 94 cents.

Results were primarily aided by increased revenues.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for Nasdaq depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate remained unchanged at 94 cents over the last 7days.

Nasdaq has a decent earnings surprise history.

Nasdaq, Inc. Price and EPS Surprise

Nasdaq, Inc. Price and EPS Surprise | Nasdaq, Inc. Quote

Overall, the company surpassed the Zacks Consensus Estimate by an average of 1.42% in the trailing four quarters.

Revenue Improves Y/Y

Nasdaq’s revenues of $599 million in the quarter increased 12% year over year. The Zacks Consensus Estimate was $599.8 million.

Key Takeaways

Adjusted operating expenses were $324 million in the reported quarter, up 13.7% year over year.

As of Dec 31, 2016, Nasdaq achieved $38 million in annualized run-rate cost synergies for the acquisitions in 2016 out of the targeted $60 million.

During 2016, the company witnessed 73% of all U.S. IPOs and 87% of technology IPOs listing on the Nasdaq Stock Market.

As of Dec 31, 2016, net debt increased 55.1% over 2015 end level to $3.2 billion.

The company expects 2017 non-GAAP operating expense in the range of $1,260–$1,310 million.

Nasdaq mentioned that it is realigning its segment reporting to combine the Listing Services and Corporate Solutions businesses into a single Corporate Services segment.  Market Technology is now a separate reporting segment.  Also, Nasdaq has decided to end its NLX interest rate futures business.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Nasdaq. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now it all depends on what sense the just-released report makes to the analysts.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Check back later for our full write up on this Nasdaq earnings report!

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