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What Awaits Intercontinental (ICE) This Earnings Season?
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Intercontinental Exchange Inc. (ICE - Free Report) is slated to report fourth-quarter 2022 earnings on Feb 2, before market open. ICE delivered an earnings surprise in each of the last four quarters, the average being 2.33%.
Factors to Note
Solid performance at Exchanges and Fixed Income and Data Services segments is likely to have aided revenues in the to-be-reported quarter.
Higher transaction revenues, strength in fixed income execution and CDS clearing businesses due to elevated volatility across global markets are likely to have aided Fixed Income and Data Services. The Zacks Consensus Estimate for the segment’s revenues is pegged at $535 million, indicating a 11.5% increase from the year-ago reported figure. We expect the metric to be $533 million.
The Exchange segment is likely to have benefited from an increase in interest rate futures and equity derivatives revenues, solid demand in energy exchange data, growth in energy, and across financial futures and options, and complex and continued benefit from record 2021 Listings performance. The Zacks Consensus Estimate for the segment’s revenues is pegged at $997 million. We expect the metric to be $971 million.
Lower mortgage origination volumes are likely to have affected The Mortgage Technology segment’s revenues. The Zacks Consensus Estimate for the segment’s revenues is pegged at $263 million, indicating a 24% decrease from the year-ago reported figure. We expect the metric to be $271 million.
Expenses are likely to have increased, given an increase in acquisition-related transaction and integration costs, technology and communication, depreciation and amortization.
ICE expects fourth-quarter 2022 operating expenses in the range of $890-$900 million while adjusted operating expenses are expected in the range of $730 -$740 million. Non-operating expenses are expected to be between $137 million and $142 million. Adjusted non-operating expenses are projected in the range of $105 -$110 million.
The Zacks Consensus Estimate for earnings is pegged at $1.26 per share, indicating a decrease of 6% from the prior-year quarter’s reported figure. We estimate bottom line to be $1.25.
ICE reported a 6.9% decrease in fourth-quarter average daily volume (ADV). While total commodities ADV decreased 6.5%, total Financials ADV was down 7.8%. Total Agriculture & Metals ADV was up 18.2% and Equity Indices ADV was up 10.1%.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Intercontinental Exchange this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Earnings ESP: Intercontinental Exchange has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.26 per share. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Intercontinental Exchange Inc. Price and EPS Surprise
Some finance stocks with the right combination of elements to come up with an earnings beat this time around are:
CME Group (CME - Free Report) has an Earnings ESP of +0.05% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.90 per share, indicating an increase of 14.5% from the year-ago reported figure.
CME’s earnings beat estimates in the last four quarters.
Coinbase Global (COIN - Free Report) has an Earnings ESP of +1.39% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth quarter is pegged at a loss $2.39 per share, indicating a decrease of 172% from the year-ago reported figure.
COIN’s earnings beat estimates in one of the last four quarters and missed in three.
Affiliated Manager (AMG - Free Report) has an Earnings ESP of +3.95% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $6.79 per share, indicating an increase of 11.3% from the year-ago reported figure.
AMG’s earnings beat estimates in the last four quarters.
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What Awaits Intercontinental (ICE) This Earnings Season?
Intercontinental Exchange Inc. (ICE - Free Report) is slated to report fourth-quarter 2022 earnings on Feb 2, before market open. ICE delivered an earnings surprise in each of the last four quarters, the average being 2.33%.
Factors to Note
Solid performance at Exchanges and Fixed Income and Data Services segments is likely to have aided revenues in the to-be-reported quarter.
Higher transaction revenues, strength in fixed income execution and CDS clearing businesses due to elevated volatility across global markets are likely to have aided Fixed Income and Data Services. The Zacks Consensus Estimate for the segment’s revenues is pegged at $535 million, indicating a 11.5% increase from the year-ago reported figure. We expect the metric to be $533 million.
The Exchange segment is likely to have benefited from an increase in interest rate futures and equity derivatives revenues, solid demand in energy exchange data, growth in energy, and across financial futures and options, and complex and continued benefit from record 2021 Listings performance. The Zacks Consensus Estimate for the segment’s revenues is pegged at $997 million. We expect the metric to be $971 million.
Lower mortgage origination volumes are likely to have affected The Mortgage Technology segment’s revenues. The Zacks Consensus Estimate for the segment’s revenues is pegged at $263 million, indicating a 24% decrease from the year-ago reported figure. We expect the metric to be $271 million.
Expenses are likely to have increased, given an increase in acquisition-related transaction and integration costs, technology and communication, depreciation and amortization.
ICE expects fourth-quarter 2022 operating expenses in the range of $890-$900 million while adjusted operating expenses are expected in the range of $730 -$740 million. Non-operating expenses are expected to be between $137 million and $142 million. Adjusted non-operating expenses are projected in the range of $105 -$110 million.
The Zacks Consensus Estimate for earnings is pegged at $1.26 per share, indicating a decrease of 6% from the prior-year quarter’s reported figure. We estimate bottom line to be $1.25.
ICE reported a 6.9% decrease in fourth-quarter average daily volume (ADV). While total commodities ADV decreased 6.5%, total Financials ADV was down 7.8%. Total Agriculture & Metals ADV was up 18.2% and Equity Indices ADV was up 10.1%.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Intercontinental Exchange this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Earnings ESP: Intercontinental Exchange has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.26 per share. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Intercontinental Exchange Inc. Price and EPS Surprise
Intercontinental Exchange Inc. price-eps-surprise | Intercontinental Exchange Inc. Quote
Zacks Rank: ICE currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Some finance stocks with the right combination of elements to come up with an earnings beat this time around are:
CME Group (CME - Free Report) has an Earnings ESP of +0.05% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.90 per share, indicating an increase of 14.5% from the year-ago reported figure.
CME’s earnings beat estimates in the last four quarters.
Coinbase Global (COIN - Free Report) has an Earnings ESP of +1.39% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth quarter is pegged at a loss $2.39 per share, indicating a decrease of 172% from the year-ago reported figure.
COIN’s earnings beat estimates in one of the last four quarters and missed in three.
Affiliated Manager (AMG - Free Report) has an Earnings ESP of +3.95% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $6.79 per share, indicating an increase of 11.3% from the year-ago reported figure.
AMG’s earnings beat estimates in the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.