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Nasdaq Smashes Q4 Estimates, Returns $138M to Shareholders in Dividends

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Jan 29- Wall Street watchers were cheerfully surprised as Nasdaq Inc. (NDAQ, Financial) scored strong fourth-quarter results, passing all earnings and revenue expectations, boosted by strong growth in financial technology and indexes business.

Adjusted earnings of $0.76 a share trumped expectations of $0.72, and revenue rose 10 percent to $1.23 billion. Including $28 billion in net inflows, the company credited its fintech segment for a 10 percent rise in revenue to $438 million and a 29 percent increase in index revenue to $188 million.

Nasdaq CEO Adena Friedman praised the company's strategic execution, noting innovation, expanding customer relationships, and cross-selling under the One Nasdaq initiative.

Nasdaq announced total revenue of $4.68 billion and adjusted earnings per share of $2.82 for 2024. Total assets under management for ETPs that track Nasdaq indexes rose to a record $647 billion.

The company looked ahead, saying it expected 2025 non-GAAP operating expenses of $2.25 billion to $2.33 billion and a non-GAAP tax rate of 22.5 percent to 24.5 percent. In Q4, in addition to paying Nasdaq $138 million in dividends, it also repurchased $181 million in senior unsecured notes.

This article first appeared on GuruFocus.