Market Overview

Preview: Nasdaq's Earnings

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Nasdaq (NASDAQ: NDAQ) will be releasing its next round of earnings this Wednesday, October 21. For all of the relevant information, here is your guide for Wednesday's Q3 earnings announcement.

The Definitions Of Net Income, Earnings, And Earnings Per Share (EPS)

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings and Revenue

Wall Street analysts see Nasdaq reporting earnings of $1.45 per share on sales of $688.02 million. Nasdaq EPS in the same period a year ago totaled $1.27. Sales were $632.00 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of its revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates," and these consensus estimates can have a significant effect on a company's performance when it releases earnings. When a company posts earnings or revenue above or below the consensus estimate, it has posted an "earnings surprise."

If the company were to report earnings in line when it publishes results Wednesday, earnings would be up 14.17%. Revenue would be have grown 8.86% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 1.44 1.46 1.27 1.21
EPS Actual 1.54 1.50 1.29 1.27
Revenue Estimate 681.97 M 692.12 M 641.06 M 629.35 M
Revenue Actual 699.00 M 701.00 M 646.00 M 632.00 M

Stock Performance

Shares of Nasdaq were trading at $127.48 as of October 19. Over the last 52-week period, shares are up 26.93%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Nasdaq is scheduled to hold the call at 08:00:00 ET and can be accessed here: https://edge.media-server.com/mmc/p/tymdzoof

 

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Posted-In: Earnings