Intercontinental Exchange (ICE) Q4 Earnings: What To Expect?
Zacks Investment Research | Feb 04, 2018 09:40PM ET
Intercontinental Exchange, Inc. (NYSE:ICE) is slated to report fourth-quarter 2017 results on Feb 7 before the market opens. Last quarter, the company surpassed the Zacks Consensus Estimate by 1.41%.
Let’s see, how things are shaping up for this announcement.
Intercontinental Exchange’s results are likely to have benefited from a strong performance in data and listing as well as trading and clearing segments. The Zacks Consensus Estimate for earnings in the to-be-reported period is pegged at 72 cents on revenues of $1.15 billion. While the bottom line reflects an increase of 1.4% from the year-ago quarter, the topline represents 0.6% improvement.
Volume growth is expected to have driven trading and clearing segment revenues.
The company also anticipates Data revenues to rise 6% year over year in 2017 with the metric for the fourth quarter estimated to better the third one’s tally. On the basis of company’s portfolio of proprietary pricing data, reference data, analytics, indices, futures data and desktops plus connectivity solutions, the data revenues might have increased. The Zacks Consensus Estimate for data service fees stands at $527 million, up 2.3% year over year.
Credit default swap clearing business is predicted to generate more than $110 million in revenues for 2017.
Sustained share buyback might have boosted the bottom line.
Intercontinental Exchange’s probable increase in expenses are attributable to higher compensation and benefits, technology and communication as well as selling, general and administrative expenses. The company projects interest expense at $50 million in the soon-to-be-reported quarter. Also, it estimates fourth-quarter expenses to be about $480 million.
Nonetheless, the company forecasts 2017 synergies of minimum $70 million, up from the prior guidance of $60 million.
What Our Quantitative Model Predicts
Our proven model does not conclusively show that Intercontinental Exchange is likely to beat estimates this quarter. This is because a stock needs to have the right combination of the two main ingredients — a positive Zacks Investment Research
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