Nasdaq earnings: What to look for from NDAQ

Global exchange operator Nasdaq (NASDAQ:NDAQ) will be announcing earnings results this Thursday before market hours. Here’s what to look for.

Nasdaq beat analysts’ revenue expectations last quarter, reporting revenues of $1.41 billion, up 13.7% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

Is Nasdaq a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Nasdaq’s revenue to grow 11.5% year on year, slowing from the 12.7% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Nasdaq rarely misses Wall Street’s revenue estimates.

Looking at Nasdaq’s peers in the capital markets segment, some have already reported their Q2 results, giving us a hint as to what we can expect. FactSet delivered year-on-year revenue growth of 6.4%, beating analysts’ expectations by 1.1%, and MSCI reported revenues up 12.2%, in line with consensus estimates. FactSet traded up 8.7% following the results.

Read our full analysis of FactSet’s results here and MSCI’s results here.

There has been positive sentiment among investors in the capital markets segment, with share prices up 5.8% on average over the last month. Nasdaq is up 9.6% during the same time and is heading into earnings with an average analyst price target of $106.80 (compared to the current share price of $90.51).

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