Jefferies Has Hold On NYSE Euronext (NYX)

Jefferies & Co. has a Hold rating and a $39 price target on shares of NYSE Euronext NYX after it reported earnings. In a note to clients, Jefferies writes, "NYX reported 1Q non-GAAP EPS of $0.68, $0.05 above our estimate and $0.08 above consensus. The beat was driven by a combination of expense savings and a modest tax benefit. M&A remained the topic du jour as management defended its existing agreement with DB1, providing a more detailed rationale for their actions and color around additional synergies. Excluding $21M in pre-tax expenses related to M&A, NYX reported 1Q non-GAAP EPS of $0.68. This is $0.05 above our estimate and $0.08 above consensus. The EPS beat was driven primarily by expense savings and a modestly better tax rate. Net revenues of $679M were approximately in line, while total expenses of $415M were $19M below expectations (see details on page 2). As a result, operating income and operating margins were better than anticipated by $16M and 250 bps, respectively. A lower effective tax rate (26.1% vs 26.5% estimate) added 1.5¢ to the bottom line as well." Shares of NYX closed at $39.75 yesterday.