NASDAQ beats by $0.01, reports revs in-line (68.18)
- Reports Q4 (Dec) earnings of $0.95 per share, $0.01 better than the Capital IQ Consensus of $0.94; revenues rose 11.8% year/year to $599 mln vs the $600.95 mln Capital IQ Consensus.
- Subscription and recurring revenues in the fourth quarter of 2016 represented 75% of total net revenues.
- Revenues in non-trading segments in the fourth quarter of 2016 grew 11%, including organic revenue growth of 5%.
- To better reflect client orientation and how management views the businesses, Nasdaq is realigning its segment reporting to integrate the Listing Services and Corporate Solutions businesses into a single Corporate Services segment. Market Technology is now reported as a separate reporting segment. Nasdaq is evolving its fixed income strategy under new leadership. The repositioning is designed to enhance the customer experience and will bring the company's U.S. and European fixed income products and services together under a single brand called Nasdaq Fixed Income led by John Shay. Nasdaq has made the decision to end its NLX interest rate futures business. Nasdaq will be working with customers to manage the wind down of open positions in an orderly manner.
- 2017 expense guidance: The company is initiating 2017 non-GAAP operating expense guidance of $1,260 to $1,310 million.