Nasdaq (NDAQ) Beats on Q1 Earnings & Revenues, Ups Dividend – April 21, 2021
3 min readNasdaq, Inc. (NDAQ – Absolutely free Report) reported to start with-quarter 2021 adjusted earnings for each share of $1.96, beating the Zacks Consensus Estimate of $1.74 by 12.6%. The base line improved 31% calendar year about calendar year.
The improvement was mainly driven by organic and natural growth, favorable adjustments in foreign exchange costs, margin growth and strong segmental efficiency.
Shares obtained 1.4% in the pre-market trading session to replicate the outperformance.
Nasdaq, Inc. Cost, Consensus and EPS Shock
Performance in Element
Nasdaq’s revenues of $851 million elevated 21% 12 months more than 12 months. The upside was mostly attributable to a $118 million positive impression from organic expansion, an $18 million affect of favorable adjustments in international trade prices and a $14 million improve from the inclusion of revenues from acquisitions. The top line beat the Zacks Consensus Estimate by 2.8%.
Modified running costs ended up $393 million, up 17% from the yr-ago period of time owing to a $24 million natural and organic maximize, an $18 million improve from acquisitions and a $15 million increase from changes in Forex prices.
Operating margin of 54% expanded 200 basis points year over calendar year.
Nasdaq witnessed 275 IPOs in the initial quarter, symbolizing $74 billion in funds elevated, including 79 operating company IPOs as nicely as 196 IPOs from exclusive objective acquisition providers. In the reported quarter, the Nasdaq welcomed 319 new listings.
Phase Details
Net revenues at Industry Expert services have been up 20% from the calendar year-back quarter to $338 million. This upside was mainly due to greater revenues from fairness spinoff trading and clearing, dollars fairness investing, fixed money and commodities buying and selling and clearing, and trade administration solutions.
Revenues at Corporate Expert services greater 21% calendar year in excess of 12 months to $155 million, pushed by larger listings products and services revenues as properly as IR & ESG revenues.
Investment Intelligence revenues rose 22% year over year to $258 million. Increased sector facts, index and analytics revenues drove the upside.
Revenues at Industry Technologies amplified 23% year above 12 months to $100 million, largely due to better revenues at market infrastructure technological know-how as well as anti-financial criminal offense engineering.
Monetary Update
Nasdaq had dollars and funds equivalents of $774 million as of Mar 31, 2021, down far more than a few-fold from 2020-stop stage. Extensive-term personal debt reduced 1.6% from 2019-stop amount to $5.5 billion as of Mar 31, 2021.
Money Deployment
Nasdaq returned $243 million in the very first quarter of 2021, including $162 million in share repurchases.
As of Mar 31, 2021, Nasdaq experienced $248 million remaining under its share repurchase authorization.
Dividend Update
The board of directors approved a 10% maximize in quarterly dividend to 54 cents per share. The dividend is payable on Jun 25, 2021 to shareholders of report as of Jun 11, 2021.
Steerage
Nasdaq offered 2021 non-GAAP functioning cost guidance in the range of $1.5 billion to $1.62 billion, revised from $1.55 billion to $1.62 billion guided earlier.
Non-GAAP tax charge is however approximated to be in the array of 25% to 27% in 2021.
Zacks Rank
Nasdaq currently carries a Zacks Rank #3 (Maintain). You can see the comprehensive checklist of today’s Zacks #1 Rank (Solid Acquire) shares in this article.
Approaching Releases
CME Team Inc. (CME – Totally free Report) is slated to release very first-quarter earnings on Apr 28. The Zacks Consensus Estimate for the 1st quarter is pegged at $1.75.
Intercontinental Trade Inc. (ICE – Free Report) is scheduled to launch initial-quarter earnings on Apr 29. The Zacks Consensus Estimate for the initially quarter is pegged at $1.30.
Cboe World Markets, Inc. (CBOE – Totally free Report) is established to launch first-quarter earnings on Apr 30. The Zacks Consensus Estimate for the initially quarter is pegged at $1.39.
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