Nasdaq Stock Market's
failed bid for the
London Stock Exchange
will hit first-quarter earnings to the tune of a dime a share.
But investors were reassured Monday when the stock market said its quarter will meet Wall Street estimates before the effect of the charge.
Nasdaq said it expects to make $18.3 million, or 14 cents a share, on revenue of $192 million in the first quarter. Analysts were expecting the exchange to make 24 cents a share on $189 million of revenue, according to Thomson Financial. Nasdaq is due to report first quarter results on Thursday.
"Based on the lapse of our offer for the London Stock Exchange in February 2007, it was determined that previously discussed costs incurred as a result of our bid be expensed in the first quarter," said David Warren, Nasdaq's CFO, in a release.
Nasdaq still owns 29% of LSE shares.
Shares fell 2 cents to $31.21.