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Intercontinental Exchange (ICE) Q3 Earnings: Beat in Store?
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Intercontinental Exchange, Inc. (ICE - Free Report) is slated to report third-quarter 2017 results on Nov 2, before the market opens. Last quarter, the company’s earnings came in line with the Zacks Consensus Estimate. Let’s see how things are shaping up for this announcement.
Intercontinental Exchange has likely benefited from growth across the company’s data and trading and clearing segments as well as strong volumes. The Zacks Consensus Estimate is currently pegged at 71 cents on revenues of $1.14 billion. While the bottom-line reflects increase of 10.9% from the year-ago quarter, top-line represents an improvement of 5.9%.
Continued share buyback provided additional upside to the bottom line.
However, the company stated the ongoing integration of Securities Evaluations, denoting the rationalization of identical business lines, might lower revenues by a couple of million dollars in the third quarter.
The company is likely to have reported an improvement in data services revenues, mainly due to solid results in pricing and analytics as well as desktops and connectivity. The Zacks Consensus Estimate for data services revenues is currently pegged at $521 million, an increase of 4.8% from the year-ago quarter.
However, listings revenues have likely lowered due to the divestiture of NYSE Governance Services on Jun 1, 2017. The Zacks Consensus Estimate for listings revenues is currently pegged at $103 million, which reflects a slip of 2.8% from the prior-year quarter.
Also, the company might have incurred higher total operating expenses in the third quarter, primarily due to higher compensation and benefits, technology and communication as well as selling, general and administrative expenses. Also, the company projects interest expense to be $47 million in the third quarter.
Notably, Intercontinental Exchange remains on track toward its full-year expense guidance. To that end, the securities exchange has projected adjusted expenses in the third quarter to range between $485 million and $495 million.
What Our Quantitative Model Predicts
Our proven model shows that Intercontinental Exchange has the right combination of the following two key ingredients to beat estimates this quarter:
Zacks ESP: Intercontinental Exchange has an Earnings ESP of +0.19%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Intercontinental Exchange Inc. Price and EPS Surprise
Zacks Rank: Intercontinental Exchange carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP as stocks with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 along with a positive Earnings ESP, have significantly higher chances of an earnings beat.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Some other stocks worth considering from the finance sector with the right combination of elements to surpass expectations this quarter are as follows:
Apollo Investment Corporation has an Earnings ESP of +2.13%. The Zacks #3 Ranked company is slated to report third-quarter earnings on Nov 3.
American Equity Investment Life Holding Company (AEL - Free Report) has an Earnings ESP of +0.40% and holds a Zacks Rank #2. The company is set to report third-quarter earnings on Nov 6.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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Intercontinental Exchange (ICE) Q3 Earnings: Beat in Store?
Intercontinental Exchange, Inc. (ICE - Free Report) is slated to report third-quarter 2017 results on Nov 2, before the market opens. Last quarter, the company’s earnings came in line with the Zacks Consensus Estimate. Let’s see how things are shaping up for this announcement.
Intercontinental Exchange has likely benefited from growth across the company’s data and trading and clearing segments as well as strong volumes. The Zacks Consensus Estimate is currently pegged at 71 cents on revenues of $1.14 billion. While the bottom-line reflects increase of 10.9% from the year-ago quarter, top-line represents an improvement of 5.9%.
Continued share buyback provided additional upside to the bottom line.
However, the company stated the ongoing integration of Securities Evaluations, denoting the rationalization of identical business lines, might lower revenues by a couple of million dollars in the third quarter.
The company is likely to have reported an improvement in data services revenues, mainly due to solid results in pricing and analytics as well as desktops and connectivity. The Zacks Consensus Estimate for data services revenues is currently pegged at $521 million, an increase of 4.8% from the year-ago quarter.
However, listings revenues have likely lowered due to the divestiture of NYSE Governance Services on Jun 1, 2017. The Zacks Consensus Estimate for listings revenues is currently pegged at $103 million, which reflects a slip of 2.8% from the prior-year quarter.
Also, the company might have incurred higher total operating expenses in the third quarter, primarily due to higher compensation and benefits, technology and communication as well as selling, general and administrative expenses. Also, the company projects interest expense to be $47 million in the third quarter.
Notably, Intercontinental Exchange remains on track toward its full-year expense guidance. To that end, the securities exchange has projected adjusted expenses in the third quarter to range between $485 million and $495 million.
What Our Quantitative Model Predicts
Our proven model shows that Intercontinental Exchange has the right combination of the following two key ingredients to beat estimates this quarter:
Zacks ESP: Intercontinental Exchange has an Earnings ESP of +0.19%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Intercontinental Exchange Inc. Price and EPS Surprise
Intercontinental Exchange Inc. Price and EPS Surprise | Intercontinental Exchange Inc. Quote
Zacks Rank: Intercontinental Exchange carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP as stocks with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 along with a positive Earnings ESP, have significantly higher chances of an earnings beat.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Some other stocks worth considering from the finance sector with the right combination of elements to surpass expectations this quarter are as follows:
Ares Capital Corporation (ARCC - Free Report) is set to report third-quarter earnings on Nov 2 with an Earnings ESP of +2.86% and a Zacks Rank of 3 as well. You can see the complete list of today’s Zacks #1 Rank stocks here.
Apollo Investment Corporation has an Earnings ESP of +2.13%. The Zacks #3 Ranked company is slated to report third-quarter earnings on Nov 3.
American Equity Investment Life Holding Company (AEL - Free Report) has an Earnings ESP of +0.40% and holds a Zacks Rank #2. The company is set to report third-quarter earnings on Nov 6.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>