Nasdaq, Inc. (NDAQ) has delivered better-than-expected results for the third quarter of 2021, benefitting from the expansion of the listed issuer base in the Corporate Platforms segment and strong performance of the marketplace and connectivity platforms.
Nasdaq is a multinational financial services corporation that serves capital markets and other industries worldwide. (See Nasdaq stock charts on TipRanks)
Adjusted earnings increased 16% year-over-year to $1.78 per share, topping the Street estimates of $1.72 per share. Total revenue surged 17% to $838 million and outpaced the consensus estimate of $833.3 million.
Solutions segments revenues rose 19% to $541 million due to the positive impact from organic growth and inclusion of revenues from the acquisition of Verafin. Market Services net revenues stood at $295 million.
Annualized Recurring Revenue (ARR) rose 19% year-over-year, and excluding Verafin, increased 10%. Annualized SaaS revenues increased 42% and represented 34% of ARR.
The Executive Vice-President and CFO of Nasdaq, Ann Dennison, said, “Our efforts to deliberately allocate capital to support the success of our long-term strategy is contributing to our 20% year-to-date revenue increase, while also supporting record year-to-date GAAP and non-GAAP diluted EPS results.”
Prior to the earnings release, Morgan Stanley analyst Michael Cyprys maintained a Buy rating on Nasdaq and raised the price target to $252 from $241. The new price target implies 20.7% upside potential from current level.
Also, Citigroup analyst Ben Herbert reiterated a Hold rating on the stock and increased the price target to $203 from $193 (2.8% downside potential). (See Insiders’ Hot Stocks on TipRanks)
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 5 Buys and 4 Holds. The average Nasdaq price target of $213.13 implies 2% upside potential. Shares of the company have gained 58.2% so far this year.
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