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Is a Beat in Store for Intercontinental (ICE) in Q2 Earnings?
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Intercontinental Exchange Inc. (ICE - Free Report) is slated to report second-quarter 2024 earnings on Aug 1, before market open. ICE delivered an earnings surprise in three of the last four quarters while matching estimates in one, the average beat being 2.94%.
Factors to Note
Continued strong trends across fixed-income data and analytics and an acceleration in growth in other data and network services businesses are likely to have favored second-quarter revenues. The Zacks Consensus Estimate for revenues is pegged at $2.3 billion, indicating an increase of 21.9% from the year-ago reported number.
Data revenues are likely to have benefited from interest rate volatility, strength in index business, growth in pricing and reference data business and growth in ICE Global Network offering, coupled with strength in desktop, feeds and derivatives analytics revenues. Our estimate is pegged at $595.1 million. The Zacks Consensus Estimate for the metric is pegged at $566.1 million.
The Exchange segment is likely to have benefited from higher transaction revenues, driven by an increase in interest rate business, solid energy revenues and a rise in commodities volume as well as financials volume. The Zacks Consensus Estimate for the segment’s revenues is pegged at $1.5 billion. We expect the metric to be $1.1 billion.
The Mortgage Technology segment’s revenues are expected to have gained from accretion from the Black Knight acquisition and higher sales. The Zacks Consensus Estimate for the segment’s revenues is pegged at $510 million, indicating more than a two-fold increase from the year-ago reported figure. We expect the metric to be $518.9 million.
Expenses are likely to have increased owing to higher compensation and benefits, professional expense, acquisition-related transaction costs, and technology and communication. We estimate expenses to increase 25.7% to $950 million.
For the second quarter of 2024, GAAP operating expenses are expected in the range of $1.21-$1.22 billion. Adjusted operating expenses are projected to be between $945 million and $955 million. GAAP non-operating expense is anticipated to be between $225 million and $230 million. Adjusted non-operating expense is estimated in the range of $205-$210 million.
The Zacks Consensus Estimate for earnings is pegged at $1.49 per share, indicating an increase of 4.2% from the prior-year quarter’s reported figure.
ICE reported a 32% increase in second-quarter average daily volume (ADV). Total Natural Gas ADV was up 36% year over year, while Energy ADV increased 31% year over year. Total Environmental ADV improved 61% year over year.
What the Zacks Model Says
Our proven model predicts an earnings beat for Intercontinental this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Intercontinental has an Earnings ESP of +0.13%. The Zacks Consensus Estimate is pegged at $1.49. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Intercontinental Exchange Inc. Price and EPS Surprise
Zacks Rank: ICE currently carries a Zacks Rank of 2.
Other Stocks to Consider
Here are some other finance stocks with the right combination of elements to come up with an earnings beat this time around.
Cboe Global Markets, Inc. (CBOE - Free Report) has an Earnings ESP of +0.44% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $2.09 per share, indicating an increase of 17.4% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
CBOE’s earnings beat estimates in each of the last four quarters.
Arch Capital Group (ACGL - Free Report) has an Earnings ESP of +0.54% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $2.17, indicating a surge of 13% from the year-ago reported figure.
ACGL’s earnings beat estimates in each of the last four quarters.
Enact Holdings (ACT - Free Report) has an Earnings ESP of +3.88% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $1.03, indicating a decrease of 6.4% from the year-ago reported figure.
ACT’s earnings beat estimates in each of the last four quarters.
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Is a Beat in Store for Intercontinental (ICE) in Q2 Earnings?
Intercontinental Exchange Inc. (ICE - Free Report) is slated to report second-quarter 2024 earnings on Aug 1, before market open. ICE delivered an earnings surprise in three of the last four quarters while matching estimates in one, the average beat being 2.94%.
Factors to Note
Continued strong trends across fixed-income data and analytics and an acceleration in growth in other data and network services businesses are likely to have favored second-quarter revenues. The Zacks Consensus Estimate for revenues is pegged at $2.3 billion, indicating an increase of 21.9% from the year-ago reported number.
Data revenues are likely to have benefited from interest rate volatility, strength in index business, growth in pricing and reference data business and growth in ICE Global Network offering, coupled with strength in desktop, feeds and derivatives analytics revenues. Our estimate is pegged at $595.1 million. The Zacks Consensus Estimate for the metric is pegged at $566.1 million.
The Exchange segment is likely to have benefited from higher transaction revenues, driven by an increase in interest rate business, solid energy revenues and a rise in commodities volume as well as financials volume. The Zacks Consensus Estimate for the segment’s revenues is pegged at $1.5 billion. We expect the metric to be $1.1 billion.
The Mortgage Technology segment’s revenues are expected to have gained from accretion from the Black Knight acquisition and higher sales. The Zacks Consensus Estimate for the segment’s revenues is pegged at $510 million, indicating more than a two-fold increase from the year-ago reported figure. We expect the metric to be $518.9 million.
Expenses are likely to have increased owing to higher compensation and benefits, professional expense, acquisition-related transaction costs, and technology and communication. We estimate expenses to increase 25.7% to $950 million.
For the second quarter of 2024, GAAP operating expenses are expected in the range of $1.21-$1.22 billion. Adjusted operating expenses are projected to be between $945 million and $955 million. GAAP non-operating expense is anticipated to be between $225 million and $230 million. Adjusted non-operating expense is estimated in the range of $205-$210 million.
The Zacks Consensus Estimate for earnings is pegged at $1.49 per share, indicating an increase of 4.2% from the prior-year quarter’s reported figure.
ICE reported a 32% increase in second-quarter average daily volume (ADV). Total Natural Gas ADV was up 36% year over year, while Energy ADV increased 31% year over year. Total Environmental ADV improved 61% year over year.
What the Zacks Model Says
Our proven model predicts an earnings beat for Intercontinental this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Intercontinental has an Earnings ESP of +0.13%. The Zacks Consensus Estimate is pegged at $1.49. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Intercontinental Exchange Inc. Price and EPS Surprise
Intercontinental Exchange Inc. price-eps-surprise | Intercontinental Exchange Inc. Quote
Zacks Rank: ICE currently carries a Zacks Rank of 2.
Other Stocks to Consider
Here are some other finance stocks with the right combination of elements to come up with an earnings beat this time around.
Cboe Global Markets, Inc. (CBOE - Free Report) has an Earnings ESP of +0.44% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $2.09 per share, indicating an increase of 17.4% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
CBOE’s earnings beat estimates in each of the last four quarters.
Arch Capital Group (ACGL - Free Report) has an Earnings ESP of +0.54% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $2.17, indicating a surge of 13% from the year-ago reported figure.
ACGL’s earnings beat estimates in each of the last four quarters.
Enact Holdings (ACT - Free Report) has an Earnings ESP of +3.88% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $1.03, indicating a decrease of 6.4% from the year-ago reported figure.
ACT’s earnings beat estimates in each of the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.