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New York-based Nasdaq, Inc. (NDAQ) operates as a technology company that serves capital markets and other industries worldwide. Valued at $45 billion by market cap, the company provides trading, clearing, exchange technology, regulatory, securities listing, analysis, investing tools and guides, financial, and information services. The leading global technology company is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Tuesday, Jan. 29.
Ahead of the event, analysts expect NDAQ to report a profit of $0.74 per share on a diluted basis, up 2.8% from $0.72 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect NDAQ to report EPS of $2.79, down 1.1% from $2.82 in fiscal 2023. However, its EPS is expected to rise 11.8% year over year to $3.12 in fiscal 2025.
NDAQ stock has outperformed the S&P 500’s ($SPX) 27.2% gains over the past 52 weeks, with shares up 38% during this period. Similarly, it outperformed the Financial Select Sector SPDR Fund’s (XLF) 28.3% gains over the same time frame.
Nasdaq's strong performance in 2024 can be attributed to leading U.S. IPOs, raising $22.7 billion and achieving significant exchange transfers. The exchange saw a record-breaking 171 IPOs, including the largest IPO from Lineage. Nasdaq maintained its leadership in healthcare, technology, and biotech IPOs, with a strong presence in the SPAC market as well. The exchange's commitment to public market access and recent leadership appointments have solidified its position in the market. Nasdaq surpassed the NYSE in listings for the sixth consecutive year, signaling optimism for a robust IPO market in 2025. The company's performance reflects the quality and diversity of its platforms, driving strong growth and benefiting from significant operating leverage.
On Oct. 24, NDAQ shares closed up more than 1% after reporting its Q3 results. Its adjusted EPS of $0.74 topped Wall Street expectations of $0.69. The company’s adjusted revenue stood at $1.2 billion, up 25.5% year over year.
Analysts’ consensus opinion on NDAQ stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 20 analysts covering the stock, nine advise a “Strong Buy” rating, four suggest a “Moderate Buy,” and seven give a “Hold.” NDAQ’s average analyst price target is $85.11, indicating a potential upside of 10.8% from the current levels.
