Exchange operator Nasdaq's profit beats estimates
Nasdaq Inc reported a better-than-expected quarterly profit as the U.S. exchange operator benefited from an increase in revenue from its market services business that oversees transactions, clearing and settlements.
Revenue from market services, the company`s biggest business, rose 4.3 percent to $581 million, benefiting from higher trade volume in European cash equities as well as favorable foreign exchange rates.
The company earned more from non-trading operations as well. Revenue from information services unit rose 9.5 percent to $150 million, while its market technology unit revenue rose 5.5 percent to $77 million.
Nasdaq has been trying to increase its non-trading related businesses such as information services and market technology to help investors make wiser trading decisions amid weak volumes and stiff competition.
The company most recently acquired investment analytics provider eVestment Alliance LLC for $705 million.
The company`s net income rose to $171 million, or $1.01 per share, in the third quarter ended Sept. 30, from $131 million, or 77 cents per share, a year earlier.
Excluding one-time items, Nasdaq earned $1.06 per share, beating the average analyst estimate of $1.02, according to Thomson Reuters I/B/E/S.
Revenue, excluding transaction-based expenses, rose 3.8 percent to $607 million, while operating expenses fell 2.6 percent to $343 million.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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