Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Nasdaq OMX Q1 Profit Drops, Misses View; Initiates First Qtly Dividend

RELATED NEWS
Trade NDAQ now with 

North American stock exchange Nasdaq OMX Group, Inc. (NDAQ: Quote) reported Wednesday a profit for the first quarter that declined from last year, primarily reflecting drop in trading revenues and lower operating margins. Adjusted earnings per share and quarterly revenues missed analysts' expectations.

The company also initiated its first quarterly cash dividend in the company's history. It declared a dividend of $0.13 per share, payable on June 29 to all stockholders of record on June 15, 2012.

Further, the company implemented a cost reduction plan with a goal of $50 million in annualized cost savings by end of 2012, with $25 million savings to be realized in 2012.

Nasdaq OMX also said it has agreed to become a shareholder of LCH.Clearnet Group Ltd. after LCH.Clearnet Group's proposed acquisition of International Derivatives Clearing Group, LLC. LCH.Clearnet Group will then become the sole owner of International Derivatives Clearing.

"While we experienced a decline in our volume driven U.S. cash equity trading and U.S. derivative trading and clearing businesses compared to the prior year quarter, these declines were almost completely offset by growth in our other businesses," President and CEO Bob Greifeld said in a statement.

The New York-based exchange reported net income of $85 million or $0.48 per share for the first quarter, lower than $104 million or $0.57 per share in the prior-year quarter.

Excluding one-time items, adjusted earnings per share for the quarter remained flat at $0.61. On average, 17 analysts polled by Thomson Reuters estimated earnings of $0.63 per share for the first quarter. Analysts' estimates typically exclude special items.

Market services revenues for the quarter were $666 million, down from $683 million in the comparable quarter a year ago.

Total revenues, excluding liquidity rebates, brokerage, clearance and exchange fees, edged down to $411 million from $413 million in the same quarter last year, and missed Wall Street analysts' consensus estimate of $416.92 million.

On a constant currency basis, net exchange revenues increased 1 percent from the prior-year quarter.

Operating income for the quarter decreased to $171 million from $183 million in the year-ago quarter. Adjusted operating income was $182 million, down from the prior-year quarter, with operating margins contracting 200 basis points to 44 percent from last year's 46 percent.

During the first quarter, the company got a total of 43 new listings, including 21 initial public offerings, compared to total listings of 34 in the first quarter of 2011.

Lee Shavel, NASDAQ OMX's EVP and CFO, said, "We are pleased to be taking the next step in our capital return strategy, initiating a cash dividend to complement our ongoing share repurchase program as a means of returning capital to our shareholders.

In Wednesday's regular trading session, NDAQ is currently trading at $25.10, down $0.24 or 0.95% on a volume of 1.85 million shares.

Register
To receive FREE breaking news email alerts for Nasdaq OMX Group Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
LinkedIn Corp., the world's largest online professional network, said Thursday after the markets closed that its third quarter loss widened slightly from last year, as higher costs and expenses more than offset a 45% increase in revenue. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its quarterly revenue. After ending the previous session modestly lower, stocks moved mostly higher over the course of the trading day on Thursday. The gains on the day more than offset yesterday's losses, lifting the major averages to their best closing levels in a month. Sen. Lindsey Graham, R-S.C., is seen as a long shot for the Republican presidential nomination in 2016, and his chances may have gotten worse after he was recorded joking about the prospects for "white men" if he were elected president.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.