Nasdaq, Inc. Set to Announce Earnings Amidst Strong Market Performance
New York-based Nasdaq, Inc. (NDAQ) is a prominent technology company that serves capital markets and other sectors globally. With a market cap of $45 billion, Nasdaq offers a wide array of services, including trading, clearing, exchange technology, regulatory compliance, securities listings, and financial analysis tools. The company is gearing up to reveal its fiscal fourth-quarter earnings for 2024 before the market opens on Tuesday, January 29.
Anticipated Earnings and Performance Trends
In advance of the earnings announcement, analysts are projecting NDAQ to report a profit of $0.74 per share on a diluted basis, reflecting a 2.8% increase from $0.72 per share in the same quarter last year. Notably, Nasdaq exceeded consensus estimates in three of the last four quarters, though it did fall short on one occasion.
Annual Earnings Forecasts
For the full year, analysts predict that NDAQ will post earnings per share (EPS) of $2.79, down slightly by 1.1% from $2.82 in fiscal 2023. However, a strong rebound is expected, with EPS anticipated to rise by 11.8% to $3.12 in fiscal 2025.
Stock Performance Outpaces Major Indices
NDAQ shares have outshined the S&P 500’s ($SPX) gains of 27.2% over the last year, soaring by 38% during the same time frame. The stock also outperformed the Financial Select Sector SPDR Fund’s (XLF) gains of 28.3% within the same period.
Record IPO Activity Drives Growth
Nasdaq has witnessed strong growth in 2024, largely due to leading U.S. IPOs that raised $22.7 billion and notable exchange transfers. The company recorded a remarkable 171 IPOs, including the largest one from Lineage. Nasdaq’s dominance in healthcare, technology, and biotech IPOs, along with a robust presence in the SPAC market, has strengthened its market position. Emerging leadership and commitment to public market access have solidified its role as a leader in the industry. For the sixth consecutive year, Nasdaq surpassed the NYSE in listings, raising optimism for a vibrant IPO market in 2025. This performance showcases the diverse strengths of its platforms, which are driving solid growth and benefiting from operational efficiencies.
On October 24, NDAQ shares rose over 1% following the release of its third-quarter results. The adjusted EPS of $0.74 exceeded Wall Street’s expectations of $0.69, with adjusted revenue climbing 25.5% year over year to reach $1.2 billion.
Analyst Sentiment and Price Targets
Analysts maintain a moderately bullish outlook on NDAQ stock, reflected in a “Moderate Buy” overall rating. Among the 20 analysts covering the stock, nine recommend a “Strong Buy,” four indicate a “Moderate Buy,” and seven suggest a “Hold.” The average analyst price target for NDAQ stands at $85.11, suggesting a potential upside of 10.8% from current shares.
On the date of publication,
Neha Panjwani
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
