Why Is Nasdaq (NDAQ) Down 1.8% Since Last Earnings Report?

Core Viewpoint - Nasdaq's Q4 2024 earnings report showed adjusted earnings per share of 76 cents, surpassing estimates and reflecting a 5% year-over-year improvement driven by higher revenues and reduced expenses [2][3]. Financial Performance - Nasdaq's net revenues reached $1.2 billion, a 10% increase year-over-year, although it slightly missed the Zacks Consensus Estimate by 0.1% [3]. - Annualized Recurring Revenue (ARR) grew by 7% year-over-year, while Annualized SaaS revenues increased by 14%, accounting for 37% of ARR [3]. - Market Services net revenues were $268 million, up 8%, primarily due to increases in U.S. equity derivatives and cash equities [4]. - Solutions business revenues rose 10% year-over-year to $949 million, driven by strong growth in Index and Financial Technology [4]. Expense Management - Adjusted operating expenses were $710 million, down 7% from the previous year, attributed to lower merger costs and administrative expenses, despite some increases due to the acquisition of Adenza [5]. - The operating margin remained flat at 55% year-over-year [6]. Annual Highlights - For the full year 2024, adjusted earnings per share were $2.82, unchanged from the previous year, but slightly above estimates [7]. - Total net revenues for 2024 were $4.6 billion, a 19% increase year-over-year, with Solutions revenues up 25% [8]. - Market Services net revenues totaled $1 billion, reflecting a 3% increase [8]. Cash Flow and Capital Deployment - As of December 31, 2024, Nasdaq had cash and cash equivalents of $592 million, a 30.6% increase from the end of 2023, while long-term debt decreased by 10.6% to $9.1 billion [10]. - The company returned $138 million to shareholders through dividends in Q4 2024 and repurchased $181 million of senior unsecured notes [11]. Future Guidance - Nasdaq anticipates 2025 non-GAAP operating expenses to be between $2,245 million and $2,325 million, with a non-GAAP tax rate forecasted between 22.5% and 24.5% [12]. Market Sentiment - Estimates for Nasdaq have been trending upward, indicating a positive outlook, with a Zacks Rank of 2 (Buy) suggesting an expectation of above-average returns in the coming months [15].