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Intercontinental Exchange (ICE) Beats on Q4 Earnings

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Have you been eager to see how Intercontinental Exchange, Inc. (ICE - Free Report) , one of the largest global stock and derivative exchange operators, performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Atlanta, GA-based company’s earnings release this morning:

An Earnings Beat

Intercontinental Exchange reported adjusted earnings per share of 71 cents, beating the Zacks Consensus Estimate of 69 cents.

Results were primarily aided by increased revenues.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for Intercontinental Exchange depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate remained unchanged at 69 cents over the last 7days.

Also, Intercontinental Exchange has a decent earnings surprise history.

Intercontinental Exchange Inc. Price and EPS Surprise

Intercontinental Exchange Inc. Price and EPS Surprise | Intercontinental Exchange Inc. Quote

Overall, the company surpassed the Zacks Consensus Estimate by an average of 2.8% in the trailing four quarters.

Revenues Came in Higher Than Expected

Intercontinental Exchange’s revenues of $1.48 billion increased 21.7% year over year. Also, the reported figure surpassed the Zacks Consensus Estimate of $1.13 billion.

Key Takeaways

Total operating expenses surged 27% year over year to $580 million in the fourth-quarter 2016.

Operating income increased 33.5% to $558 million.    

The company anticipates data services revenues (non-GAAP) to increase at least 6% in 2017.

Intercontinental Exchange announced first-quarter dividend of 20 cents per share, reflecting an increase of 18% from the prior payout. The dividend will be paid on Mar 31 to shareholders of record as of Mar 16.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Intercontinental Exchange. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now it all depends on what sense the just-released report makes to the analysts.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Check back later for our full write up on this Intercontinental Exchange earnings report later!

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