Successful investors don't act hurriedly on the basis of a headline number. Judging by the market's reaction to yesterday's earnings release from Nasdaq OMX
Don't forget the EPS adjustment
Yes, GAAP-diluted earnings decreased by nearly 90% year over year to $0.24 per share. However, last year's comparable quarter included a massive $431 million gain on the sale of Nasdaq's London Stock Exchange stake. Strip that and a few other items out, and you get a very different picture: Adjusted earnings per share increased 28% to $0.52.
More importantly, matched market share in NYSE securities is up, to 23%, and the integration of OMX is ahead of schedule. The target for achieving $100 million in cost savings from the merger has been moved up -- again -- to the current quarter. The original target was the fourth quarter of 2009!
Net U.S. cash equity trading revenue has also risen, by a smart 31%. Some of the Nasdaq's large- and mid-cap stocks that have jumped the most in trading volume over the past year include Microsoft
Exchanges look cheap, and Nasdaq is no exception
When I covered NYSE Euronext's
Under Bob Greifeld's leadership, the company is making steady progress toward ambitious goals. The stock's path won't be even, but now is a good time for investors to hitch a ride with this smart operator.
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