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Nasdaq (NDAQ) Q1 Earnings & Revenues Beat, Ups Dividend

Nasdaq, Inc. NDAQ provides trading, clearing, exchange technology, regulatory, securities listing, information, and public company services worldwide.

The company has been focusing thoroughly on recognized technologies to help navigate the global capital markets towards potent, transparent and low-cost trading platforms.

The company has positioned itself firmly for the long term growth via a number of strategic acquisitions in the non-transaction space over the past years.

Nasdaq has been helping expand global exchanges with superior trading and clearing infrastructure, and build them as leading integrated multi-asset exchanges, thereby creating a niche for itself in the less-competitive zone.

Additionally, the rising focus on the rapidly growing exchange-traded products (ETPs), to build a strong global index business, is evident from Nasdaq’s strengthened distribution, technology and product generation capacities in this space. The inorganic story remains compelling with strategic buyouts.

The stock does have a modest history of delivering positive surprise in three of last four quarters, making for an average surprise of just about 2.1%.

Currently, Nasdaq has a Zacks Rank #3 (Hold), but that could definitely change following its earnings report that has just been released. The key takeaways from this immediate announcement are highlighted below:

Earnings: Nasdaq beats estimates. Nasdaq reported record earnings per share of 91 cents per share while our Zacks Consensus Estimates was 89 cents.

Revenue: Revenues surpassed our estimate. Our consensus called for revenues of $532 million, and the company reported revenues of $534 million. Organic revenue growth, excluding currency fluctuations, stood at 4%.

Key Stats to Note: Operating expenses were $315 million down 34% year over year.

Listings business improved with about 47 new listings and 10 IPOs in the quarter.

Net debt during the quarter increased 8.3% year over year to $2.6 billion as of Mar 31, 2016.

Nasdaq paid back $70 million to its shareholders in the quarter. The board of directors approved 28% dividend increase and an additional $370 million in share buybacks.

The company expects 2016 non-GAAP operating expense in the range of $1,180-$1,230 million, up from $1,110-$1,160 million.

During the quarter, Nasdaq acquired Chi-X Canada, an Alternative Trading System for Toronto Stock Exchange as well as Marketwired, a leading global provider of news distribution services and analytics for communications professionals.  The company also announced to acquire International Securities Exchange, an operator of three electronic U.S. options exchanges

Check back later for our full write up on this NDAQ earnings report later!

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