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Intercontinental Exchange (ICE) Q3 Earnings: Beat in Store?
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We expect securities exchange Intercontinental Exchange, Inc. (ICE - Free Report) to beat expectations when it reports third-quarter results on Nov 1, before the market opens.
Why a Likely Positive Surprise?
Our proven model shows that Intercontinental Exchange has the right combination of two key ingredients to beat estimates.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +0.31%. This is because the Most Accurate estimate of $3.23 is pegged higher than the Zacks Consensus Estimate of $3.22. The positive ESP is a meaningful and leading indicator of a likely earnings beat. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Intercontinental Exchange carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank of #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating on earnings. The combination of Intercontinental Exchange’s Zacks Rank #3 and +0.31% Earnings ESP makes us reasonably confident of an earnings beat.
Conversely, the Sell-rated stocks (Zacks Rank #4 and 5) should never be considered going into an earnings announcement.
Currently, the stock is trading at $266.11. We expect the release to lead to stock movement.
What is Driving the Better-Than-Expected Earnings?
Intercontinental Exchange is likely to report bottom-line growth in the third quarter, driven by improved revenues as well as prudent expense management. Further, trading volumes are expected to have improved.
Moreover, the company is likely to report a rise in pricing and analytics revenues within its data and listings segment in the to-be-reported quarter. High retention rate of existing customers, acquisition of new customers and the development of new and advanced products are the likely growth drivers.
The company estimates credit default swap (CDS) clearing revenues to remain flat year over year, at $26 million.
Also, continued share buyback should have aided the bottom line.
However, exposure to low interest rates and demand for low-priced products might have weighed on the company’s desired upside in the trading volumes.
In addition, Intercontinental Exchange expects adjusted operating expenses to be between 485 and $495 million in the third quarter.
With respect to earnings trend, the company delivered positive surprises in three of the last four quarters, with an average beat of 2.60%. Let’s see how things are shaping up for this announcement.
Here are some companies from the finance sector that you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
OM Asset Management plc has an Earnings ESP of +3.33% and a Zacks Rank #2. The company is slated to report third-quarter earnings on Nov 2.
Fortress Investment Group LLC (FIG - Free Report) has an Earnings ESP of +4.00% and a Zacks Rank #3. The company is set to report third-quarter earnings on Nov 3.
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Intercontinental Exchange (ICE) Q3 Earnings: Beat in Store?
We expect securities exchange Intercontinental Exchange, Inc. (ICE - Free Report) to beat expectations when it reports third-quarter results on Nov 1, before the market opens.
Why a Likely Positive Surprise?
Our proven model shows that Intercontinental Exchange has the right combination of two key ingredients to beat estimates.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +0.31%. This is because the Most Accurate estimate of $3.23 is pegged higher than the Zacks Consensus Estimate of $3.22. The positive ESP is a meaningful and leading indicator of a likely earnings beat. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Intercontinental Exchange carries a Zacks Rank #3 (Hold). Note that stocks with a Zacks Rank of #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating on earnings. The combination of Intercontinental Exchange’s Zacks Rank #3 and +0.31% Earnings ESP makes us reasonably confident of an earnings beat.
Conversely, the Sell-rated stocks (Zacks Rank #4 and 5) should never be considered going into an earnings announcement.
Currently, the stock is trading at $266.11. We expect the release to lead to stock movement.
What is Driving the Better-Than-Expected Earnings?
Intercontinental Exchange is likely to report bottom-line growth in the third quarter, driven by improved revenues as well as prudent expense management. Further, trading volumes are expected to have improved.
Moreover, the company is likely to report a rise in pricing and analytics revenues within its data and listings segment in the to-be-reported quarter. High retention rate of existing customers, acquisition of new customers and the development of new and advanced products are the likely growth drivers.
The company estimates credit default swap (CDS) clearing revenues to remain flat year over year, at $26 million.
Also, continued share buyback should have aided the bottom line.
However, exposure to low interest rates and demand for low-priced products might have weighed on the company’s desired upside in the trading volumes.
In addition, Intercontinental Exchange expects adjusted operating expenses to be between 485 and $495 million in the third quarter.
With respect to earnings trend, the company delivered positive surprises in three of the last four quarters, with an average beat of 2.60%. Let’s see how things are shaping up for this announcement.
INTERCONTNTLEXC Price and EPS Surprise
INTERCONTNTLEXC Price and EPS Surprise | INTERCONTNTLEXC Quote
Stocks to Consider
Here are some companies from the finance sector that you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
The Allstate Corporation (ALL - Free Report) , which is set to report third-quarter earnings on Nov 2, has an Earnings ESP of +1.61% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
OM Asset Management plc has an Earnings ESP of +3.33% and a Zacks Rank #2. The company is slated to report third-quarter earnings on Nov 2.
Fortress Investment Group LLC (FIG - Free Report) has an Earnings ESP of +4.00% and a Zacks Rank #3. The company is set to report third-quarter earnings on Nov 3.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>