Summary
Nasdaq, Inc.'s third-quarter 2018 report shows stable revenue but a slight decrease in net income and EPS compared to the prior year's quarter. Total revenues were largely flat, while operating income saw a modest decline. The company has been actively engaged in strategic initiatives, including the divestiture of its Public Relations Solutions and Digital Media Services businesses in April 2018 and the pending acquisition of Cinnober. These activities, along with acquisitions from 2017, impact year-over-year comparisons. Despite a slight dip in quarterly net income, the nine-month performance reflects growth, indicating resilience in Nasdaq's diversified business segments. From an investor's perspective, key takeaways include the continued strength in Information Services and Market Technology segments, offsetting a slight softness in Market Services and Corporate Services. The company's commitment to returning capital to shareholders is evident through consistent dividend payouts and an ongoing share repurchase program. While operational expenses saw an increase, particularly in compensation and amortization, these are being managed within the context of strategic investments and business evolution. The company maintains a healthy liquidity position and compliance with debt covenants, signaling financial stability.
Financial Highlights
56 data points| Revenue | $964.00M |
| Cost of Revenue | $364.00M |
| Gross Profit | $600.00M |
| Operating Expenses | $354.00M |
| Operating Income | $246.00M |
| Interest Expense | $38.00M |
| Net Income | $163.00M |
| EPS (Basic) | $0.33 |
| EPS (Diluted) | $0.32 |
| Shares Outstanding (Basic) | 492.68M |
| Shares Outstanding (Diluted) | 501.87M |
Key Highlights
- 1Total revenues for the three months ended September 30, 2018, were $964 million, a slight decrease of 0.1% from $965 million in the same period of 2017. For the nine months ended September 30, 2018, total revenues increased by 7.5% to $3,141 million from $2,929 million in the prior year.
- 2Net income attributable to Nasdaq for the third quarter of 2018 was $163 million, a decrease of 4.1% from $170 million in the third quarter of 2017. Diluted EPS also decreased to $0.97 from $1.00.
- 3The company successfully divested its Public Relations Solutions and Digital Media Services businesses in April 2018, recognizing a pre-tax net gain of $33 million.
- 4Nasdaq announced a pending all-cash acquisition of Cinnober in September 2018 for approximately $190 million, which is expected to be included in its Market Technology segment.
- 5Information Services segment revenue saw significant growth, increasing by 19.3% to $179 million in the third quarter of 2018, driven by strong performance in Index and Investment Data & Analytics.
- 6Market Technology segment revenues increased by 9.7% to $68 million in the third quarter of 2018, reflecting growth in delivery, support, and SaaS revenues.
- 7The company repurchased $394 million of its common stock during the first nine months of 2018, demonstrating a commitment to shareholder returns, alongside declared cash dividends totaling $208 million for the same period.