Nasdaq, owner of the second-largest US stock exchange, recorded quarterly profits that exceeded previous estimates and made great strides in the so-called solutions business.
The Nasdaq (ticker: NDAQ) reported third-quarter adjusted earnings of 71 cents per share, jumping from 68 cents in last year’s first quarter and slightly above Wall Street’s call of 69 cents.
Total revenues for the period were $1.45 billion, down from $1.56 billion recorded in the previous year. Revenue in the Solutions business segment, which includes areas such as capital access platforms and combating financial crime, rose 9%, while the merchant services figure fell 1%.
Shares were up 6.1% at $52.98, putting them on pace for their biggest gain since April 6, 2020, when they jumped 6.7%, according to Dow Jones Market Data. The stock was the leading performer in the S&P 500 Index.
“Our third-quarter 2023 results reflect Nasdaq’s strong execution amid a continuing economic backdrop and dynamic capital markets,” Nasdaq Chairman and CEO Adena Friedman said in the earnings release. “We have seen some improvement in the IPO environment by welcoming IPOs, we have continued to expand our client portfolio in the financial crime space, and we have introduced new innovations to our products and services.”
Friedman also highlighted the previously announced acquisition of Adenza, a provider of risk management and regulatory software, and said the deal is expected to close in the fourth quarter of this year.