NASDAQ Earnings Preview: Non-Transaction Revenues To Drive Growth In Q1

April 26th, 2016 by Trefis Team
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NASDAQ OMX Group (NASDAQ:NDAQ) is scheduled to announce its Q1 earnings on Wednesday, April 27. While equity derivatives in the U.S. failed to show growth in the first quarter of fiscal 2016, cash equities volume rose 21% year-on-year (y-o-y). Conversely, the European markets remained resilient for equity derivatives, but witnessed a decline in cash equity volumes. This mixed trend in volumes will likely result in lukewarm growth in transaction revenues in Q1.

On the non-transaction front, technology solutions revenues – which were were down 3% year-on-year in 2015 – are expected to see growth with the roll out of its new product NASDAQ IR Insight. We expect information services revenues to grow on the back of benefits accrued from the Dorsey Wright acquisition and the continued momentum in customer demand for U.S. proprietary data products. In terms of listings revenue, the company said that it remains confident even as the competition from upcoming exchanges such as BATS and IEX is becoming increasingly intense.

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Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment / ask questions on the comments section
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to the full Trefis analysis for Nasdaq

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