Intercontinental Exchange ( ICE Quick Quote ICE - Free Report) reported third-quarter 2022 adjusted earnings per share of $1.31, which beat the Zacks Consensus Estimate of $1.26. Also, the bottom line increased 0.8% 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 the strength of its technology and data services. Intercontinental Exchange Inc. Price, Consensus and EPS Surprise
Performance in Detail
Intercontinental Exchange’s revenues, less transaction-based expenses, of $1.8 billion increased 1% year over year on higher revenues from Exchanges and Fixed Income and Data Services. The top line beat the Zacks Consensus Estimate by 1.1%.
Net revenues from Exchanges were $1 billion, up 4% year over year. Fixed Income and Data Services revenues were $534 million, which increased 12% year over year. Mortgage Technology revenues decreased 25% to $276 million. Total operating expenses decreased 2.8% year over year to $898 million, primarily due to lower compensation and benefits and professional services. Adjusted operating expenses were $727 million in the third quarter, down 3.7% from the year-ago figure. Adjusted operating income improved 3.5% year over year to $1.1 billion. Adjusted operating margin expanded 200 basis points (bps) from the year-ago quarter to 60%. Exchanges' adjusted operating income of $717 million was up 10.3% year over year. Adjusted operating margin expanded 400 bps to 72%. Fixed Income and Data Services' adjusted operating income rose 31% to $241 million. Adjusted operating margin expanded 600 bps to 45%. Mortgage Technology’s adjusted operating income of $126 million was down 40.8% year over year. Adjusted operating margin contracted 1200 bps to 46%. Financial Update
As of Sep 30, 2022, Intercontinental Exchange had cash and cash equivalents of $6.1 billion, up more than four-fold from the Dec 31, 2021 level. Long-term debt of $18.1 billion increased 46.1% from the 2021-end level.
Total equity was $22.9 billion as of Jun 30, 2022, down 1.4% from 2021-end. Operating cash flow was $2.5 billion in the first nine months of 2022, up 6.8% year over year. Free cash flow was $2.1 billion, up 7.1% year over year. ICE repurchased $632 million worth of shares and paid out $640 million in dividends in the first nine months of 2022. Q4 Guidance
Operating expenses for third-quarter 2022 are projected in the range of $890-$900 million. Adjusted operating expenses are expected in the range of $730-$740 million.
Non-operating expense is expected to be in the range of $137 million to $142 million. Adjusted non-operating expense is expected in the range of $105-$110 million. Weighted average shares outstanding are anticipated between 558 million and 563 million shares. Dividend Update
The board of directors approved a dividend of 38 cents per share for the fourth quarter of 2022, up 15% from 33 cents per share paid in the third quarter of 2021. The dividend will be paid out on Dec 30, 2022 to shareholders of record on Nov 16, 2022.
Intercontinental Exchange currently carries a Zacks Rank #3 (Hold). You can see
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Of the industry players that have reported third-quarter results so far,
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