Nasdaq Earnings: Strong Solutions Revenue Leads to Double-Digit Revenue Growth
Narrow-moat-rated Nasdaq reported solid second-quarter earnings as strength in its financial technology and index businesses more than offset unimpressive growth in listing and market service revenue. Net revenue increased 25% from last year, or 10% when adjusted for the acquisition of Adenza, to $1.16 billion. Meanwhile, diluted earnings per share decreased 30% from last year to $0.38 due to acquisition-related costs. As we incorporate these results, we do not expect to materially alter our $60 fair value estimate for Nasdaq. We see the shares are roughly fairly valued.