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What Awaits Intercontinental Exchange (ICE) in Q1 Earnings?
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Intercontinental Exchange, Inc. (ICE - Free Report) is slated to report first-quarter 2020 results on Apr 30, before the opening bell.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.6 billion, suggesting an improvement of 22.4% from the prior-year quarter.
The same for earnings per share is pegged at $1.23, indicating growth of 33.7% from the year-ago reported figure.
Key Factors to Note
Intercontinental Exchange’s first-quarter revenues are likely to have benefited from improved transaction and clearing services, and strong data services and listing fees. The Zacks Consensus Estimate for first-quarter transaction and clearing, net is pegged at $1.4 billion, indicating growth of 57.8% from the prior-year reported figure. Further, the consensus mark for first-quarter data services fees is pegged at $563 million, suggesting growth of 3.1% from the year-ago quarter. The same for listing fees is pegged at $114 million, which indicates growth of 2.3% from the prior-year quarter.
Moreover, the company’s top-line growth is likely to have gained from compelling product and service suite, and strategic acquisitions. Increased data services revenues are likely to have bolstered the company’s revenues as well. The company estimated first-quarter 2020 data revenues in the range of $560-$565 million per its last earnings conference.
Furthermore, continued share buybacks are likely to have benefited Intercontinental Exchange’s performance in the to-be-reported quarter.
However, increased expenses related to compensation and benefits, technology and communication, selling, general and administrative, and depreciation and amortization are likely to have impacted the first-quarter performance. Per the last earnings call, Intercontinental Exchange estimated first-quarter 2020 adjusted operating expenses in the range of $570-$580 million.
Q1 Volumes
Intercontinental Exchange’s first-quarter futures & options average daily volume (ADV) increased 42% year over year to 8 million. Energy ADV surged 54% year over year to 3.9 million, while agriculture & metals ADV improved 31% year over year to 0.6 million. Interest rate ADV was up 28% year over year to 2.9 million. Equity indices ADV rose 47% year over year. Such increased volumes are likely to get reflected in the company’s first-quarter results.
Intercontinental Exchange, Inc. Price and EPS Surprise
The company surpassed estimates in three of the trailing four quarters. It has a trailing four-quarter positive earnings surprise of 4.28%, on average.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Intercontinental Exchange 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. But that’s not the case here.
Earnings ESP: Intercontinental Exchange has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some stocks worth considering from the finance sector with a right combination to surpass estimates in the upcoming quarterly releases are as follows:
Virtu Financial, Inc. (VIRT - Free Report) has an Earnings ESP of +39.67% and a Zacks Rank #1. The company is slated to announce first-quarter 2020 earnings on May 7.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +2.18% and a Zacks Rank #3. The company is scheduled to release first-quarter 2020 earnings on May 5.
American International Group, Inc. (AIG - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank #3. The company is slated to announce first-quarter 2020 earnings on May 4.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
What Awaits Intercontinental Exchange (ICE) in Q1 Earnings?
Intercontinental Exchange, Inc. (ICE - Free Report) is slated to report first-quarter 2020 results on Apr 30, before the opening bell.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.6 billion, suggesting an improvement of 22.4% from the prior-year quarter.
The same for earnings per share is pegged at $1.23, indicating growth of 33.7% from the year-ago reported figure.
Key Factors to Note
Intercontinental Exchange’s first-quarter revenues are likely to have benefited from improved transaction and clearing services, and strong data services and listing fees. The Zacks Consensus Estimate for first-quarter transaction and clearing, net is pegged at $1.4 billion, indicating growth of 57.8% from the prior-year reported figure. Further, the consensus mark for first-quarter data services fees is pegged at $563 million, suggesting growth of 3.1% from the year-ago quarter. The same for listing fees is pegged at $114 million, which indicates growth of 2.3% from the prior-year quarter.
Moreover, the company’s top-line growth is likely to have gained from compelling product and service suite, and strategic acquisitions. Increased data services revenues are likely to have bolstered the company’s revenues as well. The company estimated first-quarter 2020 data revenues in the range of $560-$565 million per its last earnings conference.
Furthermore, continued share buybacks are likely to have benefited Intercontinental Exchange’s performance in the to-be-reported quarter.
However, increased expenses related to compensation and benefits, technology and communication, selling, general and administrative, and depreciation and amortization are likely to have impacted the first-quarter performance. Per the last earnings call, Intercontinental Exchange estimated first-quarter 2020 adjusted operating expenses in the range of $570-$580 million.
Q1 Volumes
Intercontinental Exchange’s first-quarter futures & options average daily volume (ADV) increased 42% year over year to 8 million. Energy ADV surged 54% year over year to 3.9 million, while agriculture & metals ADV improved 31% year over year to 0.6 million. Interest rate ADV was up 28% year over year to 2.9 million. Equity indices ADV rose 47% year over year. Such increased volumes are likely to get reflected in the company’s first-quarter results.
Intercontinental Exchange, Inc. Price and EPS Surprise
Intercontinental Exchange, Inc. price-eps-surprise | Intercontinental Exchange, Inc. Quote
Earnings Surprise History
The company surpassed estimates in three of the trailing four quarters. It has a trailing four-quarter positive earnings surprise of 4.28%, on average.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Intercontinental Exchange 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. But that’s not the case here.
Earnings ESP: Intercontinental Exchange has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Some stocks worth considering from the finance sector with a right combination to surpass estimates in the upcoming quarterly releases are as follows:
Virtu Financial, Inc. (VIRT - Free Report) has an Earnings ESP of +39.67% and a Zacks Rank #1. The company is slated to announce first-quarter 2020 earnings on May 7.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +2.18% and a Zacks Rank #3. The company is scheduled to release first-quarter 2020 earnings on May 5.
American International Group, Inc. (AIG - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank #3. The company is slated to announce first-quarter 2020 earnings on May 4.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>