Nasdaq Earnings: Strong Index Revenue Offset by Weakness in Listing and Market Services

Narrow-moat-rated Nasdaq reported decent first-quarter earnings that came in a bit below our expectations as strong results from the firm’s index segment were partially offset by weakness in its exchange business. Net revenue increased 22% from last year, or 6% when adjusted for the acquisition of Adenza. Adjusted diluted earnings per share fell to $0.63 from $0.69 last year as lower trading revenue and share dilution from the Adenza acquisition weighed on results. As we incorporate these results, we do not plan to materially alter our $60 fair value estimate, and we see the shares as fairly valued.