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Nasdaq OMX Group Misses Where it Counts

Wednesday - 7/24/2013, 2:00am  ET

Nasdaq OMX Group reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Nasdaq OMX Group beat expectations on revenues and missed slightly on earnings per share.

Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share dropped. GAAP earnings per share contracted.

Gross margins expanded, operating margins contracted, net margins shrank.

Revenue details
Nasdaq OMX Group logged revenue of $451.0 million. The 10 analysts polled by S&P Capital IQ expected sales of $441.2 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.62. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.63 per share. Non-GAAP EPS of $0.62 for Q2 were 3.1% lower than the prior-year quarter's $0.64 per share. GAAP EPS of $0.52 for Q2 were 1.9% lower than the prior-year quarter's $0.53 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 55.4%, 390 basis points better than the prior-year quarter. Operating margin was 23.6%, 90 basis points worse than the prior-year quarter. Net margin was 10.8%, 50 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $502.0 million. On the bottom line, the average EPS estimate is $0.66.

Next year's average estimate for revenue is $1.88 billion. The average EPS estimate is $2.61.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 583 members out of 606 rating the stock outperform, and 23 members rating it underperform. Among 161 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 159 give Nasdaq OMX Group a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nasdaq OMX Group is outperform, with an average price target of $32.29.

This article was originally published as Nasdaq OMX Group Misses Where it Countson Fool.com

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