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Intercontinental Exchange (ICE) Q4 Earnings Beat & Up Y/Y
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Intercontinental Exchange, Inc. (ICE - Free Report) reported fourth-quarter 2017 adjusted earnings per share of 73 cents, beating the Zacks Consensus Estimate by 1.39%. Also, the bottom line improved 2.8% on a year-over-year basis.
Intercontinental Exchange Inc. Price, Consensus and EPS Surprise
The quarter witnessed increase in data service revenues. Lower expenses aided operating margin expansion.
On a GAAP basis, net income was $2.08 cents per share, rising more than three-fold year over year.
Performance in Detail
Intercontinental Exchange’s revenues of $1.14 billion inched up 0.5% year over year on higher data service revenues as well as other revenues. The top line lagged the Zacks Consensus Estimate of $1.15 billion.
Total operating expenses decreased 4.8% ye ar over year to $552 million, primarily driven by lower compensation and benefits, professional service, acquisition-related transaction as well as integration costs. Adjusted operating expenses were $479 million in the fourth quarter.
Operating income improved 6.1% to $592 million.
Full-Year Highlights
Intercontinental Exchange reported 2017 adjusted earnings per share of $2.95, surpassing the Zacks Consensus Estimate of $2.94. The bottom line improved 6.1% over 2016.
Intercontinental Exchange’s revenues of $4.6 billion grew 2.9% year over year. Results were in line with the Zacks Consensus Estimate. Top line logged a record figure for the twelfth straight year.
Financial Update
At the end of 2017, Intercontinental Exchange had cash and cash equivalents of $535 million, up 31.4% from Dec 31, 2016. Long-term debt of $4.3 billion increased 10.2% from the 2016-end level.
Total equity was $16.9 billion as of Dec 31, 2017 compared with $15.7 billion as of Dec 31, 2016.
Cash flows from operations were $2.1 billion for 2017. Operational capital expenditures in 2016 were $179 million.
Guidance
Adjusted operating expenses in 2018 are estimated between $495 million and $505 million in the first quarter of 2018 and between $2 billion and $2.05 billion for 2018.
Interest expense is projected at $52 million in the first quarter of 2018.
2018 Expense Synergies is estimated at about $30 million.
2018 Capital Expenditures are projected between $300 million and $330 million.
Intercontinental Exchange’s share count for the first quarter is likely to be in the range of $525-$592 million.
Our Take
Results of Intercontinental Exchange reflect a solid performance. The company remains well-poised for growth, given its strength in energy franchise, increasing recurring market data revenues and strategic initiatives. The company remains focused on enhancing its shareholders’ value.
Among other securities exchanges, the bottom line of CME Group Inc. (CME - Free Report) , Nasdaq, Inc. (NDAQ - Free Report) and MarketAxess, Inc. (MKTX - Free Report) beat the respective Zacks Consensus Estimate last quarter.
Zacks Top 10 Stocks for 2018
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Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Intercontinental Exchange (ICE) Q4 Earnings Beat & Up Y/Y
Intercontinental Exchange, Inc. (ICE - Free Report) reported fourth-quarter 2017 adjusted earnings per share of 73 cents, beating the Zacks Consensus Estimate by 1.39%. Also, the bottom line improved 2.8% on a year-over-year basis.
Intercontinental Exchange Inc. Price, Consensus and EPS Surprise
Intercontinental Exchange Inc. Price, Consensus and EPS Surprise | Intercontinental Exchange Inc. Quote
The quarter witnessed increase in data service revenues. Lower expenses aided operating margin expansion.
On a GAAP basis, net income was $2.08 cents per share, rising more than three-fold year over year.
Performance in Detail
Intercontinental Exchange’s revenues of $1.14 billion inched up 0.5% year over year on higher data service revenues as well as other revenues. The top line lagged the Zacks Consensus Estimate of $1.15 billion.
Total operating expenses decreased 4.8% ye
ar over year to $552 million, primarily driven by lower compensation and benefits, professional service, acquisition-related transaction as well as integration costs. Adjusted operating expenses were $479 million in the fourth quarter.
Operating income improved 6.1% to $592 million.
Full-Year Highlights
Intercontinental Exchange reported 2017 adjusted earnings per share of $2.95, surpassing the Zacks Consensus Estimate of $2.94. The bottom line improved 6.1% over 2016.
Intercontinental Exchange’s revenues of $4.6 billion grew 2.9% year over year. Results were in line with the Zacks Consensus Estimate. Top line logged a record figure for the twelfth straight year.
Financial Update
At the end of 2017, Intercontinental Exchange had cash and cash equivalents of $535 million, up 31.4% from Dec 31, 2016. Long-term debt of $4.3 billion increased 10.2% from the 2016-end level.
Total equity was $16.9 billion as of Dec 31, 2017 compared with $15.7 billion as of Dec 31, 2016.
Cash flows from operations were $2.1 billion for 2017. Operational capital expenditures in 2016 were $179 million.
Guidance
Adjusted operating expenses in 2018 are estimated between $495 million and $505 million in the first quarter of 2018 and between $2 billion and $2.05 billion for 2018.
Interest expense is projected at $52 million in the first quarter of 2018.
2018 Expense Synergies is estimated at about $30 million.
2018 Capital Expenditures are projected between $300 million and $330 million.
Intercontinental Exchange’s share count for the first quarter is likely to be in the range of $525-$592 million.
Our Take
Results of Intercontinental Exchange reflect a solid performance. The company remains well-poised for growth, given its strength in energy franchise, increasing recurring market data revenues and strategic initiatives. The company remains focused on enhancing its shareholders’ value.
Intercontinental Exchange carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among other securities exchanges, the bottom line of CME Group Inc. (CME - Free Report) , Nasdaq, Inc. (NDAQ - Free Report) and MarketAxess, Inc. (MKTX - Free Report) beat the respective Zacks Consensus Estimate last quarter.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>