Please ensure Javascript is enabled for purposes of website accessibility

Nasdaq Notches Q3 Beats, Declares Dividend, and Names a New CFO

By Eric Volkman – Oct 21, 2020 at 6:45PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Heavier trading activity fueled growth on both the top and bottom lines.

Wednesday has been a very busy day for Nasdaq (NDAQ -0.03%). The securities exchange operator spent its morning releasing its latest quarterly results, announcing a fresh dividend, and delivering news about a big change in its C-suite.

For the company's third quarter, net revenue came in at $715 million, a 13% improvement over the same period one year ago. Non-GAAP (adjusted) net income also headed north, rising by nearly 21% to $256 million ($1.53 per share).

A woman looking at a set of indexes and graphs.

Image source: Getty Images.

Both headline figures exceeded the average analyst estimates, which were for just over $688 million on the top line, and $1.45 in adjusted per-share earnings.

Nasdaq attributed much of its growth to increased trading volume, particularly in U.S. stocks and options.

The company also declared its latest quarterly dividend. This is to be $0.49 per share, matching the previous two distributions. It will be paid on Dec. 18 to investors of record as of Dec. 4, and at the latest closing share price yields slightly under 1.5%. Nasdaq is a reliable dividend payer, consistently handing out a disbursement every quarter. Since mid-2012, its dividend has risen steadily from $0.13 per share to the present level.

Finally, the company is replacing its CFO. Following Michael Ptasznik's decision to retire from the position, Nasdaq named its current chief accounting officer and controller Ann Dennison to be his successor. Dennison will formally take up her new post on March 1, 2021. She has been with the company for five years; previously she was managing director, head of financial reporting at Goldman Sachs.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.