Nasdaq Earnings Manage to Overcome Weak Trading Volumes

Nasdaq OMX Group Inc. (NASDAQ: NDAQ) has just reported a gain in its quarterly earnings due to its growth of the market data operations. Earnings were $0.53 per share, but this was $0.64 per share on an adjusted basis, and revenue came to $413 million. The results compare to the Thomson Reuters consensus estimates of $0.60 per share and $407.2 million in revenue. The market already knows that financial market firms do not offer guidance.

With share volume being light in so many issues you knew that this had to be addressed. Robert Greifeld, Nasdaq OMX’s CEO, said, “The second quarter saw a continuation of solid growth in our recurring and subscription-based businesses. Strong growth in our Global Market Data, Access Services and Global Index businesses offset continued weak trends in our transaction-based businesses.”

We would be paying close attention to shares of NYSE Euronext, Inc. (NYSE: NYX) and CME Group Inc. (NASDAQ: CME) as they are also facing lighter issues around trading volume.

The electronic trading exchange finally paid its first dividend during the quarter, and it also said that it spent some $125 million to repurchase stock.

Shares are indicated above $22 after closing at $21.83 on Tuesday, and the 52-week trading range is $20.32 to $27.34. Thomson Reuters had a consensus analyst price target of $27.40 before this news.

JON C. OGG