Summary
NASDAQ OMX Group, Inc. (NDAQ) reported third-quarter and year-to-date financial results for the period ending September 30, 2012. The company saw a decrease in revenue compared to the prior year, primarily driven by lower trading volumes in both cash equities and derivatives, particularly in its U.S. operations. This decline was partially offset by modest growth in Issuer Services and Market Technology segments. Despite the revenue decline, operating expenses were managed effectively, leading to a decrease in operating income. Net income attributable to NASDAQ OMX also declined year-over-year, impacting diluted earnings per share. The company continued its share repurchase program and initiated cash dividends on common stock, signaling a commitment to returning capital to shareholders. Significant events during the period included acquisitions in the Issuer Services segment and the divestiture of a subsidiary, alongside ongoing legal proceedings related to the Facebook IPO.
Financial Highlights
56 data points| Revenue | $746.00M |
| Cost of Revenue | $334.00M |
| Gross Profit | $412.00M |
| Operating Expenses | $242.00M |
| Operating Income | $170.00M |
| Interest Expense | $24.00M |
| Net Income | $89.00M |
| EPS (Basic) | $0.18 |
| EPS (Diluted) | $0.17 |
| Shares Outstanding (Basic) | 498.71M |
| Shares Outstanding (Diluted) | 511.56M |
Key Highlights
- 1Revenue for the nine months ended September 30, 2012, decreased by 1.5% to $2,367 million compared to $2,595 million in the same period of 2011, primarily due to a 10.6% decrease in Market Services revenue.
- 2Net income attributable to NASDAQ OMX decreased by 13.1% to $266 million for the nine months ended September 30, 2012, compared to $306 million in the prior year.
- 3Diluted earnings per share (EPS) for the nine months ended September 30, 2012, were $1.53, a decrease from $1.70 in the same period of 2011.
- 4The company completed its share repurchase program authorized in Q4 2011, repurchasing 9,443,157 shares for $225 million. An additional $300 million repurchase program was authorized in Q3 2012.
- 5Two acquisitions were completed in 2012: NOS Clearing ASA for approximately $40 million and BWise Beheer B.V. for approximately $57 million initially.
- 6The company divested its majority-owned subsidiary, International Derivatives Clearing Group, LLC (IDCG), in August 2012, resulting in a $14 million loss.
- 7Restructuring charges of $36 million were recognized in the first nine months of 2012 related to a company-wide initiative to improve performance and reduce costs.