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Is a Beat in the Offing for Nasdaq (NDAQ) in Q2 Earnings?

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Nasdaq, Inc. (NDAQ - Free Report) is slated to report second-quarter 2024 earnings on Jul 25, before the opening bell. The company delivered an earnings surprise in three of the last four reported quarters, while missing in one.

Factors to Consider

Continued organic revenue growth, solid solutions business, increase in data and listing service revenues, and contributions from the Adenza acquisition are likely to have aided Nasdaq’s second-quarter performance.

An increase in international demand is expected to have driven proprietary data revenues. 

Non-trading revenues are likely to have benefited from improved results in Market Technology, Market Data and Analytics businesses.

Increased demand for Verafin's fraud and anti-money laundering solutions is likely to have aided the anti-financial crime technology business. Accretion from AxiomSL and Calypso have added to the upside. Improved trade management services and market technology are likely to have aided the Marketplace Technology business. We expect Marketplace Technology revenues to be $215.5 million. 

A strong-performing Index business is expected to have aided better results at the Capital Access Platforms division.

However, a lower initial public offering is likely to have impacted new sales in the to be reported quarter.

The Zacks Consensus Estimate for revenues is pegged at $1.1 billion, indicating a 22% increase from the prior-year reported figure. 

An increase in compensation and benefits, professional & contract services expenses, as well as computer operations & data communications and higher occupancy is likely to have increased total expenses for the to-be-reported quarter. We expect non-GAAP operating expenses to increase 19.9% year over year.

The continued share buyback is anticipated to have provided an additional boost to the bottom line.

The Zacks Consensus Estimate for earnings is pegged at 64 cents per share, indicating a 9.9% decrease from the prior-year reported figure. 

Q2 Volumes

Nasdaq reported mixed volumes for second-quarter 2024. The U.S. equity options volume increased 4% year over year to 776 million contracts. European options and futures volume decreased 17% year over year to 15.1 million contracts.

Revenues per contract for the U.S. equity options dropped 7.7% year over year to 12 cents, while the same for European options and futures increased 23.1% to 48 cents.

Under its cash equities, Nasdaq’s U.S. matched equity volume in the second quarter grossed 119.3 billion shares, up 4.9% from the prior-year quarter’s level. European equity volume increased 4% year over year to $206 billion. 

In the second quarter, there were 4,557 listed companies on the Nasdaq compared with 4,808 in the year-ago period. Total listings dropped 2.7% year over year to 5,223.

We expect data and listing services revenues to increase 11% to $207.6 million in the to-be-reported quarter.

What Our Quantitative Model States

Our proven model predicts an earnings beat for Nasdaq this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).

Earnings ESP: Nasdaq has an Earnings ESP of +0.85% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Nasdaq, Inc. Price and EPS Surprise

 

Nasdaq, Inc. Price and EPS Surprise

Nasdaq, Inc. price-eps-surprise | Nasdaq, Inc. Quote

Zacks Rank: Nasdaq currently carries a Zacks Rank #3.

Other Stocks to Consider

Cboe Global Markets (CBOE - Free Report) has an Earnings ESP of +2.10% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $2.08 per share, indicating a year-over-year increase of 16.9%. 

CBOE’s earnings beat estimates in each of the last four quarters.

Intercontinental Exchange (ICE - Free Report) has an Earnings ESP of +36.53% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $1.48 per share, indicating a year-over-year increase of 3.5%.

ICE’s earnings beat estimates in each of the last four quarters.

CME Group (CME - Free Report) has an Earnings ESP of +0.75% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $2.53 per share, indicating a year-over-year increase of 10%.

CME’s earnings beat estimates in each of the last four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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