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New York-based Nasdaq, Inc. (NDAQ) operates as a technology company that serves capital markets and other industries worldwide. With a market cap of $35.8 billion, Nasdaq operates through Capital Access Platforms, Financial Technology, and Market Services segments. It is expected to announce its Q2 earnings before the market opens on Thursday, July 25.
Ahead of the event, analysts expect Nasdaq to report a profit of $0.63 per share, down 11.3% from $0.71 per share reported in the year-ago quarter. The company surpassed Wall Street’s EPS projections in three of the past four quarters while missing on one other occasion. Its EPS for the last reported quarter decreased by 8.7% annually to $0.63 and missed the consensus estimates by 3.1%.
Looking ahead to fiscal 2024, analysts expect Nasdaq to report an EPS of $2.68, down 5% from $2.82 in fiscal 2023. Its fiscal 2025 EPS is expected to grow 12.7% annually to $3.02.
NDAQ stock has gained 7% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 17.1% gains and the S&P 500 Financials Sector SPDR’s (XLF) 12.3% returns over the same time frame.
In the turbulent seas of global finance, Nasdaq finds itself navigating stormy waters. Battling a rocky macroeconomic climate with high interest rates, Nasdaq also faces a formidable new challenger in the Texas Stock Exchange (TXSE). Backed by heavyweights like BlackRock, Inc (BLK), Goldman Sachs Group, Inc. (GS), Charles Schwab Corporation (SCHW), and Citadel Securities, TXSE aims to lure companies seeking relief from Nasdaq's and NYSE's mounting compliance costs.
Following its Q1 earnings report on April 25, NDAQ stock fell 2%. While revenues climbed 9.2%, net income took a 22.5% hit, raising concerns among investors. Operating expenses surged 40.8%, with a notable 32.8% jump in compensation and benefits, underscoring worries about cost management.
The consensus opinion on Nasdaq stock is moderately bullish, with a “Moderate Buy” rating overall. Out of the 17 analysts covering the stock, seven recommend a “Strong Buy,” two advise a “Moderate Buy,” seven suggest a “Hold,” and the remaining one analyst has a “Moderate Sell” rating.
The average target price for Nasdaq is $67, indicating a potential upside of 7.7% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
