Nasdaq OMX Group
The 10-second takeaway
For the quarter ended March 31 (Q1), Nasdaq OMX Group missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins dropped, net margins contracted.
Nasdaq OMX Group chalked up revenue of $411.0 million. The 13 analysts polled by S&P Capital IQ expected to see a top line of $418.1 million on the same basis. GAAP reported sales were 2.0% lower than the prior-year quarter's $817.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.61. The 17 earnings estimates compiled by S&P Capital IQ anticipated $0.63 per share on the same basis. GAAP EPS of $0.48 for Q1 were 16% lower than the prior-year quarter's $0.57 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.3%, 50 basis points better than the prior-year quarter. Operating margin was 23.8%, 10 basis points worse than the prior-year quarter. Net margin was 10.6%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $432.4 million. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $1.74 billion. The average EPS estimate is $2.69.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 588 members out of 609 rating the stock outperform, and 21 members rating it underperform. Among 158 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 153 give Nasdaq OMX Group a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nasdaq OMX Group is outperform, with an average price target of $29.88.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.