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Intercontinental Exchange (ICE) Posts Record Volumes in Q2

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Intercontinental Exchange, Inc. (ICE - Free Report) has grossed record average daily volume (ADV) for Agriculture and Metals, which increased 13% year over year. Volumes in the second quarter were driven by better numbers in all the months of the quarter.

The exchange operator witnessed record Oil ADV, increasing 2% year over year. While Euribor ADV improved 21% year over year, Gilt ADV was 29% higher. Oil ADV grew 2% year over year.

However, total Futures and Options volume in March declined 11% to 6.3 million contracts. A 4.5% lower Commodities ADV and 16.9% lower Financials ADV were responsible for this downside. Revenues per contract were 13 cents for June, down 23.5% year over year.

Recently, securities exchanges, namely CBOE Holdings Inc. (CBOE - Free Report) , CME Group Inc. (CME - Free Report) and MarketAxess Holdings Ltd. (MKTX - Free Report) also posted respective monthly volumes. CBOE Global Markets’ June ADV of 7.3 million contracts increased 1.6% year over year while CME Group’s ADV of 18.4 million contracts per day rose 12% year over year. MarketAxess has reported a trading volume of $147.8 billion for June 2018.

Intercontinental Exchange is scheduled to report second-quarter 2018 results before the market opens on Aug 2. The Zacks Consensus Estimate for quarterly earnings is pegged at 88 cents on revenues of $1.2 billion, reflecting 17.3% and 4.2% year-over-year growth, respectively.

Our proven model conclusively shows that the company is likely to deliver a positive surprise. This is because the stock carries a favorable Zacks Rank #2 (Buy) and an Earnings ESP of +1.52%.

Shares of Intercontinental Exchange have underperformed the industry in a year. The stock has gained 4.3%, lagging the industry’s increase of 5.7%. Nonetheless, we believe that the company’s compelling product portfolio, risk management services, prudent acquisitions, timely achievement of cost synergies, strategic initiatives and a solid capital position should drive the shares higher and strengthen its growth profile as well.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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