Nasdaq Inc. (NDAQ) is a global technology company focused on the capital markets and other industries. In addition to its popular stock exchange, the company provides data, analytics, software and services designed to help its clients optimize and execute their business vision.
The company generated 69% of its revenue from Market Services, 16% of its revenue from Investment Intelligence, 9% of its revenue from Corporate Platforms and 6% of its revenue from Market Technology during the first quarter of 2021.
Strong First Quarter Results
Nasdaq reported first quarter revenue that rose 21.4% to $851 million, beating consensus estimates by $45.49 million, with non-GAAP earnings of $1.96 per share, beating consensus estimates by 22 cents. While the company’s U.S. market share eroded, cash equity trading revenue rose 36% to $617 million thanks to higher U.S. industry trading volumes, net capture rates and the impact of foreign exchange rates.
Analysts have been largely bullish on the stock in recent months. For example, Oppenheimer analyst Owen Lau raised his price target and maintained an Outperform rating, saying that the solid quarter highlighted his thesis that Nasdaq has a diversified model riding multiple secular trends. Lau also believes that its focus on becoming a SaaS provider positions it well for earnings growth and multiple expansion over time.
The company raised its quarterly dividend by 10.2% to $0.54 per share, which represents a 1.17% forward yield. The dividend is payable on June 25, 2021, to shareholders on record as of June 11, 2021.
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