NASDAQ OMX Group, Inc. (NDAQ) Edges Out Earnings Estimates

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NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) released the results from its first quarter before opening bell this morning, edging out estimates. The stock exchange reported earnings per share of 72 cents on $529 million in revenue, which was a new record and a 27% year over year increase. Analysts had been expecting NASDAQ OMX to post non-GAAP 71 cents per share in earnings on $526.55 million in revenue. In the first quarter of last year, NASDAQ OMX reported non-GAAP earnings of 64 cents per share.

Examining NASDAQ OMX’s earnings

On a GAAP basis, earnings were 59 cents per diluted share, compared to 25 cents a share in the same quarter a year ago. The stock exchange reported 9% organic revenue growth and organic growth in all four segments: Information Services, Market Services, Technology Solutions and Listing Services.

“While we have benefited from a more constructive market environment, we also saw meaningful improvement in our leadership position in the period, as evidenced by our higher U.S. and European equity trading market share and our 64% share of U.S. IPOs,” said NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) CEO Bob Greifeld. “Regarding the recent elevated debate over various U.S. equity market structure issues, NASDAQ OMX operates its leading exchanges with transparency, fairness, and efficiency, has been a leading innovator, and will continue to work with regulators and market participants to evolve our markets.”

Breaking down NASDAQ OMX’s results

NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) reported net revenues of $213 million in Market Services, which made up 40% of their revenue. Within that segment, net revenues from Derivatives were $76 million and made up 14% of their total revenue. The stock exchange posted Cash Equities revenues of $58 million. The segment made up 11% of total revenues. Fixed Income was 3% of revenues and amounted to $14 million, while Access and Broker Services made up 12% and was $65 million for the quarter.

Information Services made up 23% of revenues and were $123 million.  Within that segment, Market Data was 19% of revenue and amounted to $100 million, while Index Licensing and Services made up 4% of revenues, adding up to $23 million.

Technology Solutions was 26% of revenues, adding up to $135 million. Within that segment, Corporate Solutions were 16% of revenue, amounting to $82 million. Market Technology made up 10% of revenue, amounting to $53 million.

Listing Services was 11% of total revenue, adding up to $58 million during the quarter.

Other numbers from NASDAQ OMX’s results

NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) reported that it paid down $121 million in debt during the quarter and that it expects to bring its gross debt / EBITDA leverage ratio down to their long-term target by the end of the current quarter.

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