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Intercontinental Exchange (ICE) Q1 Earnings, Revenues Top
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Intercontinental Exchange (ICE - Free Report) reported first-quarter 2022 adjusted earnings per share of $1.43, which beat the Zacks Consensus Estimate of $1.42. Also, the bottom line increased 7% on a year-over-year basis.
ICE witnessed persistent revenue growth, driven by strong Exchanges and Fixed Income and Data Services. The results benefited from recurring revenue growth across segments combined with growth in diverse transaction-based businesses.
Intercontinental Exchange Inc. Price, Consensus and EPS Surprise
Intercontinental Exchange’s revenues, less transaction-based expenses, of $1.9 billion increased 6% year over year on higher revenues from Exchanges and Fixed Income, and Data Services. The top line beat the Zacks Consensus Estimate by 0.7%.
Net revenues from Exchanges were $1.1 billion, up 11% year over year. Fixed Income and Data Services revenues were $509 million, which increased 9% year over year. Mortgage Technology revenues decreased 13% to $307 million.
Total operating expenses inched up 0.2% year over year to $907 million, primarily due to higher compensation and benefits, technology and communication expenses, and selling, general and administrative. Adjusted operating expenses were $746 million in the first quarter, up 2.3% from the year-ago figure.
Adjusted operating income improved 8% year over year to $1.2 billion. Adjusted operating margin expanded 200 basis points (bps) from the year-ago quarter to 61%.
Exchanges' adjusted operating income of $800 million was up 18.3% year over year. Adjusted operating margin expanded 500 bps to 74%. Fixed Income and Data Services' adjusted operating income rose 14.6% to $204 million. Adjusted operating margin expanded 200 bps to 40%. Mortgage Technology’s adjusted operating income of $149 million was down 30.4% year over year. Adjusted operating margin contracted 1100 bps to 49%.
Financial Update
As of Mar 31, 2022, Intercontinental Exchange had cash and cash equivalents of $1.7 billion, up 5.9% from the Dec 31, 2021 level. Long-term debt of $12.4 billion was almost flat with the 2021-end level.
Total equity was $22.7 billion as of Mar 31, 2022, down 0.2% from 2021-end.
Operating cash flow was a record $756 million in the first quarter of 2022, up about 3% year over year. Free cash flow was a record $660 million, down about 6% year over year.
ICE repurchased $475 million worth of shares and paid out $214 million in dividends in the first quarter of 2022.
Q2 Guidance
Operating expenses for second-quarter 2022 are projected in the range of $900-$910 million. Adjusted operating expenses are expected in the range of $740-$750 million.
Non-operating expense is expected to be in the range of $135 million to $140 million. Adjusted non-operating expense is expected in the range of $100-$105 million.
Weighted average shares outstanding are anticipated between 558 million and 546 million shares.
Dividend Update
The board of directors approved a dividend of 38 cents per share for the second quarter of 2022, up 15% from 33 cents per share paid in the second quarter of 2021. The dividend is payable on Jun 30, 2022 to shareholders of record on Jun 15, 2022.
Of the industry players that have reported first-quarter results so far, Nasdaq Inc. (NDAQ - Free Report) , CME Group (CME - Free Report) and MarketAxess Holdings (MKTX - Free Report) beat the respective Zacks Consensus Estimate for earnings.
Nasdaq’s adjusted earnings per share of $1.97 beat the Zacks Consensus Estimate by 2.1% and improved 0.5% year over year. Revenues of $892 million increased 5% year over year and matched the consensus estimate. The operating margin of 51% contracted 200 bps year over year.
Nasdaq expects 2022 non-GAAP operating expenses in the range of $1.70 billion to $1.76 billion, narrower than the prior expectation of $1.68 billion to $1.76 billion.
CME Group’s first-quarter 2022 adjusted earnings per share of $2.11 beat the Zacks Consensus Estimate of $2.00 and increased 17.9% year over year due to higher clearing and transaction fees and market data and information services.
CME Group’s revenues of $1.3 billion increased 5% year over year and beat the Zacks Consensus Estimate by 5%. Average daily volume increased in five out of the six products lines.
MarketAxess’ earnings per share of $1.73 beat the Zacks Consensus Estimate by 1.8%, driven by revenues and trading volumes but declined from $2.11 per share a year ago. Total revenues were $186 million, reflecting a decrease of 4.6% year over year but matching the consensus estimate. The operating margin of 47% expanded 340 basis points year over year.
Emerging markets volume decreased 7% year over year while emerging markets ADV was up 5%. The total credit category’s trading volumes decreased 3% year over year to $12 billion.
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Intercontinental Exchange (ICE) Q1 Earnings, Revenues Top
Intercontinental Exchange (ICE - Free Report) reported first-quarter 2022 adjusted earnings per share of $1.43, which beat the Zacks Consensus Estimate of $1.42. Also, the bottom line increased 7% on a year-over-year basis.
ICE witnessed persistent revenue growth, driven by strong Exchanges and Fixed Income and Data Services. The results benefited from recurring revenue growth across segments combined with growth in diverse transaction-based businesses.
Intercontinental Exchange Inc. Price, Consensus and EPS Surprise
Intercontinental Exchange Inc. price-consensus-eps-surprise-chart | Intercontinental Exchange Inc. Quote
Performance in Detail
Intercontinental Exchange’s revenues, less transaction-based expenses, of $1.9 billion increased 6% year over year on higher revenues from Exchanges and Fixed Income, and Data Services. The top line beat the Zacks Consensus Estimate by 0.7%.
Net revenues from Exchanges were $1.1 billion, up 11% year over year. Fixed Income and Data Services revenues were $509 million, which increased 9% year over year. Mortgage Technology revenues decreased 13% to $307 million.
Total operating expenses inched up 0.2% year over year to $907 million, primarily due to higher compensation and benefits, technology and communication expenses, and selling, general and administrative. Adjusted operating expenses were $746 million in the first quarter, up 2.3% from the year-ago figure.
Adjusted operating income improved 8% year over year to $1.2 billion. Adjusted operating margin expanded 200 basis points (bps) from the year-ago quarter to 61%.
Exchanges' adjusted operating income of $800 million was up 18.3% year over year. Adjusted operating margin expanded 500 bps to 74%. Fixed Income and Data Services' adjusted operating income rose 14.6% to $204 million. Adjusted operating margin expanded 200 bps to 40%. Mortgage Technology’s adjusted operating income of $149 million was down 30.4% year over year. Adjusted operating margin contracted 1100 bps to 49%.
Financial Update
As of Mar 31, 2022, Intercontinental Exchange had cash and cash equivalents of $1.7 billion, up 5.9% from the Dec 31, 2021 level. Long-term debt of $12.4 billion was almost flat with the 2021-end level.
Total equity was $22.7 billion as of Mar 31, 2022, down 0.2% from 2021-end.
Operating cash flow was a record $756 million in the first quarter of 2022, up about 3% year over year. Free cash flow was a record $660 million, down about 6% year over year.
ICE repurchased $475 million worth of shares and paid out $214 million in dividends in the first quarter of 2022.
Q2 Guidance
Operating expenses for second-quarter 2022 are projected in the range of $900-$910 million. Adjusted operating expenses are expected in the range of $740-$750 million.
Non-operating expense is expected to be in the range of $135 million to $140 million. Adjusted non-operating expense is expected in the range of $100-$105 million.
Weighted average shares outstanding are anticipated between 558 million and 546 million shares.
Dividend Update
The board of directors approved a dividend of 38 cents per share for the second quarter of 2022, up 15% from 33 cents per share paid in the second quarter of 2021. The dividend is payable on Jun 30, 2022 to shareholders of record on Jun 15, 2022.
Zacks Rank
Intercontinental Exchange currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Securities and Exchanges
Of the industry players that have reported first-quarter results so far, Nasdaq Inc. (NDAQ - Free Report) , CME Group (CME - Free Report) and MarketAxess Holdings (MKTX - Free Report) beat the respective Zacks Consensus Estimate for earnings.
Nasdaq’s adjusted earnings per share of $1.97 beat the Zacks Consensus Estimate by 2.1% and improved 0.5% year over year. Revenues of $892 million increased 5% year over year and matched the consensus estimate. The operating margin of 51% contracted 200 bps year over year.
Nasdaq expects 2022 non-GAAP operating expenses in the range of $1.70 billion to $1.76 billion, narrower than the prior expectation of $1.68 billion to $1.76 billion.
CME Group’s first-quarter 2022 adjusted earnings per share of $2.11 beat the Zacks Consensus Estimate of $2.00 and increased 17.9% year over year due to higher clearing and transaction fees and market data and information services.
CME Group’s revenues of $1.3 billion increased 5% year over year and beat the Zacks Consensus Estimate by 5%. Average daily volume increased in five out of the six products lines.
MarketAxess’ earnings per share of $1.73 beat the Zacks Consensus Estimate by 1.8%, driven by revenues and trading volumes but declined from $2.11 per share a year ago. Total revenues were $186 million, reflecting a decrease of 4.6% year over year but matching the consensus estimate. The operating margin of 47% expanded 340 basis points year over year.
Emerging markets volume decreased 7% year over year while emerging markets ADV was up 5%. The total credit category’s trading volumes decreased 3% year over year to $12 billion.