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Intercontinental Exchange (ICE) Q3 Earnings Miss Estimates

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Intercontinental Exchange, Inc. (ICE - Free Report) is the largest global stock and derivative exchange operator post the NYSE acquisition in Nov 2013. With disciplined expense management, strategic acquisitions and consistent focus on organic growth initiatives boost operating leverage.

Timely achievement of cost synergies and global expansion strategy are expected to contribute positively to earnings. Alongside, strong operating cash flow and improved financial leverage also help maintain a healthy balance sheet.

Intercontinental Exchange’s tactical business model is crucial for countering risks from stiff competition, currency fluctuations, weak rate per contract and regulatory challenges.

Overall, Intercontinental Exchange surpassed estimates in three of the last four quarters that led to an average earnings surprise of +2.5 %.

Currently, Intercontinental Exchange has a Zacks Rank #3 (Hold), but that could definitely change following its second-quarter earnings report that has just been released. The key takeaways from this immediate announcement are highlighted below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings: Intercontinental Exchange earnings miss our expectations. Our consensus called for EPS of $3.22, while the company reported $3.21.

INTERCONTNTLEXC Price and EPS Surprise

INTERCONTNTLEXC Price and EPS Surprise | INTERCONTNTLEXC Quote

Revenue: Net revenues marginally missed our estimate. The company reported revenues of $1.078 billion, compared to our consensus of $1.081 billion.

Key Stats to Note: Total operating expenses soared 61% year over year to $604 million in the quarter. Operating income improved 7.7% to $474 million.    

Long-term debt stood at $4.7 billion, inched up 0.06% from 2015-end level.

The company expects adjusted operating expenses in the range of $500-$505 million for the fourth quarter of 2016 and $1.94- $1.97 billion for full-year 2016.

Check back later for our full write up on this Intercontinental Exchange earnings report later!

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