Nasdaq Earnings Soar

The stock market is cutting costs.
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Nasdaq

I:IXIC

shares surged 7% late Thursday after the stock market operator said second-quarter earnings nearly tripled.

For the second quarter ended June 30, earnings rose to $14 million, or 13 cents a share, from the year-ago $4.8 million, or 2 cents a share, a year ago. Net revenue rose to $130 million from $120 million a year earlier.

Nasdaq said latest-quarter earnings benefited from a 6.6% drop in costs.

"Nasdaq's strong second quarter performance reflects the consistent implementation of our road map initiative to remove costs, streamline processes, and improve productivity," finance chief David Warren said. "During the quarter we achieved further reductions in ongoing operating expenses, strengthening our operating model, increasing our competitiveness and delivering solid earnings growth. As a result of our positive first half performance we are revising our full-year guidance for 2005."

The company guided to full-year earnings of 47 cents a share on net revenue of $497 million. Wall Street had been expecting 43 cents on $481 million.

Late Thursday, Nasdaq shares rose $1.55 to $22.50.