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Intercontinental Exchange (ICE) Q2 Earnings: Beat in Store?

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We expect the securities exchange Intercontinental Exchange, Inc. (ICE - Free Report) to surpass expectations when it reports second-quarter 2017 results on Aug 3, 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 this quarter.

Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +1.33%. This is because the Most Accurate estimate of 76 cents is higher than the Zacks Consensus Estimate of 75 cents. This positive ESP is a leading indicator of a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Intercontinental Exchange holds a Zacks Rank #2 (Buy). Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) have significantly higher chances of beating on earnings.

Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.

What is Driving the Better-Than-Expected Earnings?

Intercontinental Exchange is likely to report bottom-line growth in the soon-to-be-reported quarter, driven by growth across the company’s data and listings business segments, strong volumes and open interest growth in futures markets.

The securities exchange has also likely witnessed a rise in revenues in the second quarter, fueled by higher data services as well as increased listings revenues.

Also, a continued share buyback should have boosted the bottom line.

However, the company might have incurred higher total operating expenses in the second quarter, primarily due to higher compensation and benefits, technology and communication as well as selling, general and administrative expenses.

Notably, Intercontinental Exchange remains on track toward its full-year expense guidance. To that end, the securities exchange has projected adjusted expenses in the second quarter to range between $485 million and $495 million.

With respect to the earnings trend, this company delivered positive surprises in three of the last four quarters with an average beat of 1.44%.

Other Stocks to Consider

Some other top-ranked companies from the finance sector with the right combination of elements to come up with an earnings beat this quarter are as follows:

National General Holdings Corp (NGHC - Free Report) is set to report second-quarter earnings on Aug 7 with an Earnings ESP of +2.56% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Manulife Financial Corporation (MFC - Free Report) has an Earnings ESP of +7.32% and a Zacks Rank #2. The company is set to report second-quarter earnings on Aug 7.

Sun Life Financial Inc. (SLF - Free Report) has an Earnings ESP of +2.70% and a Zacks Rank #1. The company is slated to report second-quarter earnings on Aug 9.

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