NEW YORK: Nasdaq Inc on Wednesday reported third-quarter profits that topped Wall Street views, helped by strength in the transatlantic exchange operator’s indexing business and a surge in trading volumes.
Nasdaq reported an adjusted quarterly profit of $1.53 per share, versus estimates of $1.46 per share, according to IBES data from Refinitiv.
Net income rose to $264 million, or $1.58 per share, from $150 million, or 90 cents per share, a year earlier.
The profit beat came largely from growth in indexing, Daniel Fannon, an analyst at Jefferies, said in a note.
Strong demand for technology stocks during the pandemic has benefited the tech-heavy Nasdaq 100 Index, but the company has many other indexes and licensing deals.
Revenue from information services, which includes indexing, rose 20% to $238 million. Net revenue rose 13% to $715 million, with market services net revenues up 15%, due to elevated trading volumes.
Increased market volatility and a new cohort of retail investors led to the higher volumes, Nasdaq Chief Executive Officer Adena Friedman said on a call with analysts.
“We are seeing a secular shift in getting more younger investors engaged in the market and I think that could create a more sustainably higher trading environment,” she said.
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