Will Nasdaq (NDAQ) Retain Its Earnings Surprise Streak in 4Q?

From Nasdaq, Inc.:

Nasdaq, Inc. is set to report its fourth-quarter 2023 earnings on January 31, before the opening bell. The company has delivered an earnings surprise in each of the trailing three reported quarters of 2023. Nasdaq’s fourth-quarter performance is likely to have benefited from organic revenue growth, strong performance at Market Platforms businesses, data and listing service revenues, and contributions from the Adenza acquisition.

Factors that are likely to have impacted Nasdaq’s fourth-quarter performance include the increased demand for trade surveillance and crypto market surveillance solutions. Additionally, recurring data revenues across its international footprint are likely to have aided revenues significantly. Nasdaq also expected its Marketplace Technology revenues to increase by 2.3% to $152.4 million.

Revenues from anti-financial crime solutions are expected to increase by 19.2% year over year to $97.7 million. On the expense side, compensation and benefits, as well as computer operations and data communications, likely increased total expenses for the to be reported quarter. Non-GAAP operating expenses are expected to increase 4.2% year over year.

Nasdaq reported soft volumes for the fourth-quarter 2023, with U.S. equity options volume increasing by 1% year over year to 781 million contracts. European options and futures volume decreased by 4% year over year to 17 million contracts. For its cash equities, Nasdaq’s U.S. matched equity volume in the fourth quarter grossed 113.3 billion shares, a decrease of 6.8% from the prior year.

Nasdaq’s Zacks Consensus Estimate for earnings is pegged at 69 cents per share, indicating a 7.8% increase from the prior-year reported figure. The company is expected to post an earnings beat, with an Earnings ESP of +0.43% and a Zacks Rank of 3. Other stocks to consider include Coinbase Global, CME Group, and Intercontinental Exchange. Each has its own Earnings ESP and Zacks Rank.



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