Nasdaq OMX Group Inc. (NDAQ) has reported third-quarter results. The company swung to a GAAP net income of $60 million or 28 cents per share compared to $69 million or 33 cents in the prior quarter and $58 million or 27 cents in the year-ago period. Results included one-time charges counting $25 million in debt conversion [...]

(NDAQ) Nasdaq OMX Group Reports In-Line With Forecasts

Nasdaq OMX Group Inc. (NDAQ) has reported third-quarter results. 

The company swung to a GAAP net income of $60 million or 28 cents per share compared to $69 million or 33 cents in the prior quarter and $58 million or 27 cents in the year-ago period. Results included one-time charges counting $25 million in debt conversion expense, $16 million in pre-tax expenses associated with asset retirements, workforce reductions and other non-recurring items, and $5 million in pre-tax merger expenses. 

Excluding these charges, pro forma earnings per share came in at 42 cents, in line with the Zacks Consensus forecast. Results were aided by growth in the company’s core businesses and significant progress from new initiatives. 

Net revenue (net of liquidity rebates, brokerage, clearance and exchange fees) slipped 4.9% sequentially and 12.5% year over year to $349 million. The decline was primarily attributable to foreign currency fluctuations. The company continued to expand its Market Technology business following its selection as the strategic technology provider to the Osaka Securities Exchange (OSE) and the Kuwait Stock Exchange (KSE). 

Total operating expenses decreased 11.3% year over year to $197 million primarily due to lower compensation expense, marketing and advertising expense, reduced expenses for computer operations and data transmission, besides lower general, administrative and other expense. 

Nasdaq has updated its 2009 guidance for total operating expenses to a range of $840 million to $850 million, including approximately $50 million in non-recurring costs. 

The company reduced total principal amount of debt obligations by $232 million to $452 million at the end of the quarter. The reduction was attributable to the repayment of $113 million on $2.0 billion term loan and the conversion of $119 million of 3.75% convertible notes held by Silver Lake and another holder into common equity. 

The world’s largest exchange, which operates across 70 bourses in more than 50 countries, offers trading, clearing and settlement in equities, futures, options, fixed-income and exchange-traded products.
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NYSE Euronext Inc. (NYX) reported third-quarter results on Friday. The company swung to a GAAP net income of $125 million or 44 cents per share from a GAAP net loss of $182 million in the prior quarter and a net income of $174 million or 66 cents in the year-ago period. Results included one-time charge related [...]

(NYX) NYSE Euronext Beats Consensus by 18%

NYSE Euronext Inc. (NYX) reported third-quarter results on Friday. 

The company swung to a GAAP net income of $125 million or 44 cents per share from a GAAP net loss of $182 million in the prior quarter and a net income of $174 million or 66 cents in the year-ago period. Results included one-time charge related to merger expenses and exit costs, the impact of the disposition of Hugin Group B.V., the sale of investments in BM&F Bovespa and a fair value adjustment to investment in BIDS Holdings L.P. 

Excluding these charges, pro forma earnings per share came in at 53 cents, beating the Consensus forecast by more than 18%, or 8 cents. The upside was attributable to growth in the company’s core businesses, significant progress from new initiatives which offset lower trading volumes. 

Net revenue increased 2.1% sequentially but slipped 13.8% year over year to $624 million. The decline was primarily attributable to foreign currency fluctuations. 

NYSE Euronext has significantly reduced dependence on the competitive share trading business as 30% of its group revenues now came from derivatives, including its recently launched NYSE Liffe Clearing derivatives clearing unit. 

U.S. operations posted a 7.6% year over year decline in revenue to $293 million. Revenue from European operations slumped 17.2% to $337 million due to reduced trading volumes. 

Fixed operating expenses decreased 0.7% year over year to $431 million. However, operating income still slumped 33.7% to $197 million, primarily due to negative foreign currency fluctuations. NYSE Euronext also slashed its headcount by 3% from the year-ago quarter to 3,399. 

The transatlantic exchange, which operates across 6 cash equities exchanges in 7 countries and 8 derivatives exchanges, offers trading, clearing and settlement in equities, futures, options, fixed-income and exchange-traded products. 

Meanwhile, bigger rival CME Group Inc. (CME) reported third-quarter earnings of $3.35 per share earlier this week, beating the Consensus forecast by 5 cents. Other rivals, including IntercontinentalExchange Inc. (ICE) and NASDAQ OMX Group Inc. (NDAQ) are scheduled to announce quarterly results next week.
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