We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Intercontinental Exchange Set to Grow Despite Challenges
Read MoreHide Full Article
On Aug 17, 2016, we issued an updated research report on Intercontinental Exchange Group Inc. (ICE - Free Report) .
Intercontinental Exchange delivered record second-quarter operating earnings per share that beat the Zacks Consensus Estimate and improved year over year on growth across the trading and clearing, and data and listings business segments. This also marked the seventh straight quarter of double-digit earnings growth.
Given the outperformance, the Zacks Consensus Estimate moved up 0.3% to $13.95 for 2016 and 1% to $15.62 for 2017 as some of the estimates moved north in the last 30 days.
ICE has been a premier stock trading platform since it became the second-largest global exchange group following its acquisition of NYSE. The company remains focused on cost control and thus management projects run-rate expense synergies of about $550 million by first-quarter 2017. Cost savings are also expected to expand margins to about 60% by 2016 end.
The company now expects adjusted operating expenses in the range of $1.94–$1.97 billion for 2016. The guidance includes $85–$90 million in synergies, about one-third of the total expense reduction the company, estimated to be delivered over the next three years. For third-quarter 2016, it is estimated between $485 million and $495 million.
Its inorganic story remains impressive with strategic acquisitions. For 2016, the company now estimates $50 million in synergies from Interactive Data acquisition.
ICE possesses a strong balance sheet with strong cash, receivables and capital position. Riding on its operational strength, ICE generated record operating cash flow of $1.1 billion in the first half of 2016. This helps the company to engage in shareholder-friendly moves.
However, low interest rates and demand for low-priced products are concerns. Also, stiff competition and challenging regulations pose as headwinds for the company.
Stocks to Consider
Currently, ICE carries a Zacks Rank #3 (Hold). Some better-ranked securities exchanges are CME Group (CME - Free Report) , MarketAxess Holdings Inc. (MKTX - Free Report) and Bats Global Markets . While MarketAxess sports a Zacks Rank #1 (Strong Buy), CME Group and Bats Global Markets carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Intercontinental Exchange Set to Grow Despite Challenges
On Aug 17, 2016, we issued an updated research report on Intercontinental Exchange Group Inc. (ICE - Free Report) .
Intercontinental Exchange delivered record second-quarter operating earnings per share that beat the Zacks Consensus Estimate and improved year over year on growth across the trading and clearing, and data and listings business segments. This also marked the seventh straight quarter of double-digit earnings growth.
Given the outperformance, the Zacks Consensus Estimate moved up 0.3% to $13.95 for 2016 and 1% to $15.62 for 2017 as some of the estimates moved north in the last 30 days.
ICE has been a premier stock trading platform since it became the second-largest global exchange group following its acquisition of NYSE. The company remains focused on cost control and thus management projects run-rate expense synergies of about $550 million by first-quarter 2017. Cost savings are also expected to expand margins to about 60% by 2016 end.
The company now expects adjusted operating expenses in the range of $1.94–$1.97 billion for 2016. The guidance includes $85–$90 million in synergies, about one-third of the total expense reduction the company, estimated to be delivered over the next three years. For third-quarter 2016, it is estimated between $485 million and $495 million.
Its inorganic story remains impressive with strategic acquisitions. For 2016, the company now estimates $50 million in synergies from Interactive Data acquisition.
ICE possesses a strong balance sheet with strong cash, receivables and capital position. Riding on its operational strength, ICE generated record operating cash flow of $1.1 billion in the first half of 2016. This helps the company to engage in shareholder-friendly moves.
However, low interest rates and demand for low-priced products are concerns. Also, stiff competition and challenging regulations pose as headwinds for the company.
Stocks to Consider
Currently, ICE carries a Zacks Rank #3 (Hold). Some better-ranked securities exchanges are CME Group (CME - Free Report) , MarketAxess Holdings Inc. (MKTX - Free Report) and Bats Global Markets . While MarketAxess sports a Zacks Rank #1 (Strong Buy), CME Group and Bats Global Markets carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>