Nasdaq, Inc. NDAQ is scheduled to announce its fourth-quarter 2023 earnings on Jan 31, before the opening bell. Remarkably, the company has surpassed earnings expectations in each of the last three quarters of 2023.
Factors to Consider
Nasdaq’s upcoming performance in the fourth quarter is expected to be bolstered by organic revenue growth, robust performance in Market Platforms businesses, data and listing service revenues, and the fruitful integration of the Adenza acquisition.
Furthermore, the improved performance in Market Technology, Market Data and Analytics segments should have a positive impact on non-trading revenues. The company’s recurring data revenues across its international footprint are anticipated to have contributed significantly to its overall revenue stream.
In addition, a surge in subscriptions from new and existing clients is likely to have bolstered the demand for trade surveillance and crypto market surveillance solutions, thus, enhancing surveillance solutions revenues.
On the flip side, increased expenses stemming from business development and diversification, compensation and benefits, merger and strategic initiatives, and other operational costs are expected to have exerted pressure on margin expansion.
Nevertheless, Nasdaq’s ongoing share buyback is expected to have provided an additional boost to the bottom line. The consensus estimate for earnings stands at 69 cents per share, reflecting a 7.8% increase from the year-ago reported figure.
Q4 Volumes
However, Nasdaq reported soft volumes for the fourth quarter of 2023. While U.S. equity options volume saw a marginal uptick year over year, European options and futures volume witnessed a decline. Meanwhile, U.S. matched equity volume witnessed a decrease, whereas European equity volume experienced a modest increase. Nasdaq observed a reduction in the total number of listed companies compared to the year-ago period.
Despite this, the company anticipates data and listing services revenues to increase for the quarter to be reported.
What Our Quantitative Model States
Our trusted model predicts that Nasdaq will likely exceed earnings estimates this quarter, owing to its positive Earnings ESP and its Zacks Rank. The current Earnings ESP for Nasdaq is +0.43%, with the Most Accurate Estimate standing at 70 cents, higher than the Zacks Consensus Estimate of 69 cents.
Nasdaq, Inc. Price and EPS Surprise
Nasdaq currently holds a Zacks Rank #3. Investors can find the complete list of Zacks #1 Rank stocks here.
Other Stocks to Consider
According to our analysis, Coinbase Global (COIN), CME Group (CME), and Intercontinental Exchange (ICE) are also anticipated to report earnings. While Coinbase Global has an Earnings ESP of +160.6%, CME Group has an Earnings ESP of +0.01% and Intercontinental Exchange has an Earnings ESP of +0.31% at present.
Investors can monitor upcoming earnings announcements using the Zacks Earnings Calendar.
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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.
