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Intercontinental Exchange, Inc. (ICE - Free Report) reported first-quarter 2017 adjusted earnings per share of 74 cents, which beat the Zacks Consensus Estimate of 73 cents by a penny. Earnings remained flat on a year-over-year basis.
The quarter witnessed growth across the company’s data and listings business segments, strong volumes and open interest growth in futures markets.
On a GAAP basis, net income was 84 cents per share, up 35% year over year. Performance in Details
Total revenue of $1.16 billion met the Zacks Consensus Estimate. Revenues increased 0.6% year over year, primarily due to higher data services revenues and rise in listings revenues.
Total operating expenses increased 2.1% year over year to $582 million. This was primarily due to higher compensation and benefits, technology and communication as well as selling, general and administrative expenses.
Operating income dipped 0.3% to $582 million. Operating margin was 50% in the quarter.
Intercontinental Exchange Inc. Price, Consensus and EPS Surprise
At the end of the quarter, Intercontinental Exchange had cash and cash equivalents of $360 million, down 11.5% from Dec 31, 2016. Long-term debt of $3.8 billion remained flat with 2016-end level.
Total equity was $15.79 billion as of Mar 31, 2017 as against $15375 billion as of Dec 31, 2016.
Guidance
Adjusted operating expenses is estimated between $485 million and $495 million for the second quarter.
Amortization of acquisition-related intangibles for the second quarter is expected to be about $66 million.
Intercontinental Exchange's diluted share count for second quarter is likely to be in the range of 590–600 million.
Our Take
Results of Intercontinental Exchange reveal a decent performance. The company remains well poised for growth given its strength in its energy franchise, increasing recurring market data revenues and strategic initiatives.
Among others securities exchanges, MarketAxess, Inc. (MKTX - Free Report) , CME Group Inc. (CME - Free Report) and Nasdaq, Inc. (NDAQ - Free Report) beat their respective Zacks Consensus Estimate in the reported quarter.
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Intercontinental Exchange (ICE) Beats Q1 Earnings Estimates
Intercontinental Exchange, Inc. (ICE - Free Report) reported first-quarter 2017 adjusted earnings per share of 74 cents, which beat the Zacks Consensus Estimate of 73 cents by a penny. Earnings remained flat on a year-over-year basis.
The quarter witnessed growth across the company’s data and listings business segments, strong volumes and open interest growth in futures markets.
On a GAAP basis, net income was 84 cents per share, up 35% year over year.
Performance in Details
Total revenue of $1.16 billion met the Zacks Consensus Estimate. Revenues increased 0.6% year over year, primarily due to higher data services revenues and rise in listings revenues.
Total operating expenses increased 2.1% year over year to $582 million. This was primarily due to higher compensation and benefits, technology and communication as well as selling, general and administrative expenses.
Operating income dipped 0.3% to $582 million. Operating margin was 50% in the quarter.
Intercontinental Exchange Inc. Price, Consensus and EPS Surprise
Intercontinental Exchange Inc. Price, Consensus and EPS Surprise | Intercontinental Exchange Inc. Quote
Financial Update
Cash flows from operations were $611 million.
At the end of the quarter, Intercontinental Exchange had cash and cash equivalents of $360 million, down 11.5% from Dec 31, 2016. Long-term debt of $3.8 billion remained flat with 2016-end level.
Total equity was $15.79 billion as of Mar 31, 2017 as against $15375 billion as of Dec 31, 2016.
Guidance
Adjusted operating expenses is estimated between $485 million and $495 million for the second quarter.
Amortization of acquisition-related intangibles for the second quarter is expected to be about $66 million.
Intercontinental Exchange's diluted share count for second quarter is likely to be in the range of 590–600 million.
Our Take
Results of Intercontinental Exchange reveal a decent performance. The company remains well poised for growth given its strength in its energy franchise, increasing recurring market data revenues and strategic initiatives.
Intercontinental Exchange presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among others securities exchanges, MarketAxess, Inc. (MKTX - Free Report) , CME Group Inc. (CME - Free Report) and Nasdaq, Inc. (NDAQ - Free Report) beat their respective Zacks Consensus Estimate in the reported quarter.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think. See This Ticker Free >>