Nasdaq beats profit estimates on trade strength
July 21 (Reuters) – Exchange operator Nasdaq Inc (NDAQ.O) reported better-than-expected quarterly profit on Wednesday, boosted by strong trading activity as frenetic activity in the stock markets continued .
The company posted adjusted net earnings of $ 1.90 per share for the second quarter ended June 30, beating estimates of $ 1.75, according to IBES data from Refinitiv.
Ongoing stock market volatility, fueled in part by a cohort of retail investors using mobile apps like Robinhood, drove trading volumes up in the quarter.
Activity moderated from the first quarter, however, as social activities resumed due to COVID-19 vaccinations which led to a reopening of the economy.
The Nasdaq also hosted 135 initial public offerings during the quarter, of which 88 were operating companies like AppLovin Corp (APP.O) and Marqeta Inc (MQ.O) and the rest were special purpose acquisition companies. (SPAC).
IPOs have had a record year so far, led by SPACs. In less than six months, US IPOs raised capital to surpass last year’s record.
Revenue from Nasdaq’s market services unit, its largest firm, jumped 13% to $ 312 million.
The investment intelligence segment, its largest non-commercial activity that includes indices, garnered $ 263 million in revenue, a 23% jump from the previous year, as investors rallied invested in products linked to the company’s indices.
The company repurchased $ 248 million of shares during the quarter, he said.
Excluding transaction expenses, revenue jumped 21% to $ 846 million.
Report by Niket Nishant in Bangalore; Editing by Maju Samuel
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