NDAQ
Nasdaq tops second-quarter expectations as index business and technology services fuel growth (NASDAQ:NDAQ)
Article Summary
BUY- Nasdaq Inc. (NASDAQ: NDAQ) reported stronger-than-expected second-quarter results driven by robust growth across its index, financial technology and market services businesses.
- The exchange operator also highlighted record milestones including hosting the largest initial public offering in exchange history, with the listing of SpaceX raising $86 billion.
- Revenue increased 15% year over year to $1.5 billion, surpassing market expectations, with assets under management in exchange-traded products linked to Nasdaq indexes surpassing $1 trillion for the first time.
- The Index business attracted $109 billion in net inflows over the past 12 months, including $51 billion during the second quarter alone, while Financial Technology revenue increased 16% to $539 million and Market Services net revenue advanced 11% at $340 million.
- Nasdaq continued returning capital to shareholders through dividends and share repurchases, with $174 million in dividend payments and $356 million used to repurchase outstanding shares.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 5.8% | 25% | 35.0 ptsBelow Screener (5.8%) - Weak growth |
| EPS Growth Next 5Y ? | 14.6% | 25% | 35.0 ptsBelow Screener (14.6%) - Modest outlook |
| Target Price Upside ? | 20.5% | 20% | 70.0 ptsGood Upside (20.5%) - Target: $108.94 vs Current: $90.42 |
| Gross Margin % ? | 57.8% | 15% | 80.0 ptsVery Healthy (57.8%) - High-quality margins |
| Drawdown from 52-Wk High ? | -11.2% | 15% | 40.0 ptsMild Pullback (-11.2%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About NDAQ
- Nasdaq, Inc. operates as a technology company that serves capital markets and other industries in the United States and internationally.
- It operates through three segments: Capital Access Platforms, Financial Technology, and Market Services.
- The company distributes historical and real-time market data; develops and licenses Nasdaq-branded indices and financial products; provides investor relations intelligence, governance solutions, and sustainability solution products for public and private companies, and organizations, as well as insights and workflow solutions; and operates listing platforms.
- It also offers Verafin, a cloud-based platform to detect, investigate, and report money laundering and financial frauds; AxiomSL, a risk data management and regulatory reporting solution; cloud-enabled and on-premises surveillance solutions to assist in complying with market rules, regulations, and internal market surveillance policies; Calypso, a platform providing cross-asset, front-to-back trading, treasury, risk, and collateral management solutions; and trade management and colocation services, as well as handles assets comprising cash equities, equity derivatives, currencies, various interest-bearing securities, commodities, energy products, and digital currencies.
- In addition, the company provides equity derivative trading and clearing, cash equity trading and fixed income, currency and commodities trading, and fixed income trading and clearing services, as well as tape plan data services; operates various exchanges, including derivatives, commodities, cash equity, debt, structured products, and exchange traded products; and offers clearing, settlement, and central depository services.
- The company was formerly known as The NASDAQ OMX Group, Inc. and changed its name to Nasdaq, Inc. in September 2015.
- Nasdaq, Inc. was founded in 1971 and is headquartered in New York, New York.