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Slumping Volume Fuels NYSE Euronext's 1Q Miss

By Features FOXBusiness

Hurt by shrinking trading volumes and its failed acquisition, Big Board parent NYSE Euronext (NYX) said Monday it suffered a steeper-than-expected 44% slump in first-quarter profits.

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NYSE Euronext said it earned $87 million, down 44% from the year-earlier $155 million. On a per-share basis, operating earnings came in at 47 cents a share, missing the Street’s view by a penny.

The company was forced to take a $16 million charge related to its failed takeover by   Germany’s Deutsche Boerse that was blocked by regulators.

Revenue fell 11.5% to $601 million, trailing consensus calls from analysts for $611.2 million. Revenue was hurt by $9 million by foreign exchange fluctuations.

“Our first quarter results reflect the challenging operating environment which carried over into 2012 and will continue to result in near-term headwinds,” CEO Duncan Niederauer said in a statement.

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NYSE said average daily volume of U.S. cash trading in the first quarter slumped by 23% year-over-year to 1.8 billion shares. Volume was off 16% from the fourth quarter of 2011. 

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The exchange operator’s shares declined 2.11% to $26.50 ahead of the opening bell, eating into their slight 2012 gain of 3.7%.

NYSE Euronext, which lost out on the coveted Facebook listing to rival Nasdaq OMX Group (NDAQ), said it continues to capture share in tech initial public offerings. Highlighted by Yelp (YELP), NYSE said it listed 13 new tech IPOs so far in 2012, or 59% of all tech IPOs.