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Intercontinental Exchange (ICE) Q2 Earnings and Revenues Top
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Intercontinental Exchange, Inc. (ICE - Free Report) reported second-quarter 2018 adjusted earnings per share of 90 cents, beating the Zacks Consensus Estimate of 89 cents by 1.1%. Also, the bottom line improved 18% on a year-over-year basis.
Intercontinental Exchange Inc. Price, Consensus and EPS Surprise
The quarter witnessed strong performance across trading and clearing as well as data and listings segments, delivering record revenues.
On a GAAP basis, net income was 78 cents per share, up 10% year over year.
Performance in Detail
Intercontinental Exchange’s revenues of $1.2 billion increased 5.6% year over year on 5.8% higher revenues at transaction and clearing, nearly 1% higher net and listings segments as well as 12.2% increase in other revenues. Moreover, the top line marginally outpaced the Zacks Consensus Estimate by 0.3%.
Total operating expenses rose 3.5% year over year to $591 million, primarily driven by higher compensation and benefits, acquisition-related transaction and integration costs and technology and communication. Adjusted operating expenses were $503 million in the second quarter, up 2.6% from the year-ago quarter’s figure.
Adjusted operating income grew 7.7% year over year to $743 million. Adjusted operating margin was 60%, having improved 200 basis points.
Trading and Clearing's adjusted operating income augmented 12.2% year over year while operating margin expanded 100 basis points. Data and Listings' adjusted operating income increased 2.5% year over year to $414 million while operating margin expanded 100 basis points.
Financial Update
As of Jun 30, 2018, Intercontinental Exchange had cash and cash equivalents of $1.3 billion, up 3.5% from the level as of Dec 31, 2017. Long-term debt of $4.3 billion inched up 0.1% from 2017-end level.
Total equity was $16.8 billion as of Jun 30, 2018, which dipped 0.1% from $16.9 billion as of Dec 31, 2017.
Free cash flow was $1 billion in the first half of 2018, up 16.7% year over year.
Guidance
Intercontinental Exchange estimates third-quarter 2018 data revenues between $530 million and $532 million while fourth-quarter data revenues are expected between $538 million and $542 million.
Adjusted operating expenses are predicted between $520 million and $525 million for the third quarter of 2018 and between $2 billion and $2.04 billion for 2018.
Operating expenses are projected between $570 million and $580 million for the third quarter of 2018 and in the $2.04-$2.05 billion range for the full year.
Interest expense is anticipated at $67 million in the third quarter and $73 million in fourth-quarter 2018.
Intercontinental Exchange’s share count for the third quarter is likely to be in the band of 581-583 million weighted average shares outstanding and between 577 million and 582 million for 2018.
Our Take
Intercontinental Exchange boasts a stellar performance in earnings results. The company remains well-poised for growth on the back of its strength in energy franchise, rising recurring market data revenues as well as growth-driving strategic initiatives. The company focuses on building its growth trajectory, customer service and shareholder value.
Among other players from the same industry having already reported second-quarter earnings, the bottom line of Nasdaq, Inc. (NDAQ - Free Report) , CME Group Inc. (CME - Free Report) and MarketAxess Holdings Inc. (MKTX - Free Report) surpassed the respective Zacks Consensus Estimate.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Intercontinental Exchange (ICE) Q2 Earnings and Revenues Top
Intercontinental Exchange, Inc. (ICE - Free Report) reported second-quarter 2018 adjusted earnings per share of 90 cents, beating the Zacks Consensus Estimate of 89 cents by 1.1%. Also, the bottom line improved 18% on a year-over-year basis.
Intercontinental Exchange Inc. Price, Consensus and EPS Surprise
Intercontinental Exchange Inc. Price, Consensus and EPS Surprise | Intercontinental Exchange Inc. Quote
The quarter witnessed strong performance across trading and clearing as well as data and listings segments, delivering record revenues.
On a GAAP basis, net income was 78 cents per share, up 10% year over year.
Performance in Detail
Intercontinental Exchange’s revenues of $1.2 billion increased 5.6% year over year on 5.8% higher revenues at transaction and clearing, nearly 1% higher net and listings segments as well as 12.2% increase in other revenues. Moreover, the top line marginally outpaced the Zacks Consensus Estimate by 0.3%.
Total operating expenses rose 3.5% year over year to $591 million, primarily driven by higher compensation and benefits, acquisition-related transaction and integration costs and technology and communication. Adjusted operating expenses were $503 million in the second quarter, up 2.6% from the year-ago quarter’s figure.
Adjusted operating income grew 7.7% year over year to $743 million. Adjusted operating margin was 60%, having improved 200 basis points.
Trading and Clearing's adjusted operating income augmented 12.2% year over year while operating margin expanded 100 basis points. Data and Listings' adjusted operating income increased 2.5% year over year to $414 million while operating margin expanded 100 basis points.
Financial Update
As of Jun 30, 2018, Intercontinental Exchange had cash and cash equivalents of $1.3 billion, up 3.5% from the level as of Dec 31, 2017. Long-term debt of $4.3 billion inched up 0.1% from 2017-end level.
Total equity was $16.8 billion as of Jun 30, 2018, which dipped 0.1% from $16.9 billion as of Dec 31, 2017.
Free cash flow was $1 billion in the first half of 2018, up 16.7% year over year.
Guidance
Intercontinental Exchange estimates third-quarter 2018 data revenues between $530 million and $532 million while fourth-quarter data revenues are expected between $538 million and $542 million.
Adjusted operating expenses are predicted between $520 million and $525 million for the third quarter of 2018 and between $2 billion and $2.04 billion for 2018.
Operating expenses are projected between $570 million and $580 million for the third quarter of 2018 and in the $2.04-$2.05 billion range for the full year.
Interest expense is anticipated at $67 million in the third quarter and $73 million in fourth-quarter 2018.
Intercontinental Exchange’s share count for the third quarter is likely to be in the band of 581-583 million weighted average shares outstanding and between 577 million and 582 million for 2018.
Our Take
Intercontinental Exchange boasts a stellar performance in earnings results. The company remains well-poised for growth on the back of its strength in energy franchise, rising recurring market data revenues as well as growth-driving strategic initiatives. The company focuses on building its growth trajectory, customer service and shareholder value.
Zacks Rank
Intercontinental Exchange carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Securities and Exchanges
Among other players from the same industry having already reported second-quarter earnings, the bottom line of Nasdaq, Inc. (NDAQ - Free Report) , CME Group Inc. (CME - Free Report) and MarketAxess Holdings Inc. (MKTX - Free Report) surpassed the respective Zacks Consensus Estimate.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>