Nasdaq OMX Group
The 10-second takeaway
For the quarter ended June 30 (Q2), Nasdaq OMX Group beat expectations on revenues and missed slightly on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share dropped. GAAP earnings per share contracted.
Gross margins expanded, operating margins contracted, net margins shrank.
Nasdaq OMX Group logged revenue of $451.0 million. The 10 analysts polled by S&P Capital IQ expected sales of $441.2 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.62. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.63 per share. Non-GAAP EPS of $0.62 for Q2 were 3.1% lower than the prior-year quarter's $0.64 per share. GAAP EPS of $0.52 for Q2 were 1.9% lower than the prior-year quarter's $0.53 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 55.4%, 390 basis points better than the prior-year quarter. Operating margin was 23.6%, 90 basis points worse than the prior-year quarter. Net margin was 10.8%, 50 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $502.0 million. On the bottom line, the average EPS estimate is $0.66.
Next year's average estimate for revenue is $1.88 billion. The average EPS estimate is $2.61.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 583 members out of 606 rating the stock outperform, and 23 members rating it underperform. Among 161 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 159 give Nasdaq OMX Group a green thumbs-up, and two 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 $32.29.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.