Intercontinental (ICE) To Report Q3 Earnings: What's Up?
Zacks Investment Research | Oct 27, 2019 10:23PM ET
Intercontinental Exchange, Inc. (NYSE:ICE) is slated to report third-quarter 2019 results on Oct 31, after market closes. The company delivered positive surprise in the last four quarters with the average being 3.49%.
Factors to Consider
Intercontinental Exchange’s third-quarter revenues are likely to have benefited from a compelling product and service portfolio, strategic acquisitions, pricing and analytics. The Zacks Consensus Estimate for revenues is pegged at $1.3 billion, indicating 9% increase from the year-ago reported figure.
The company expects the momentum in data revenue growth to continue. The company expects data revenues to be in the range of $550 million to $555 million in the third quarter.
In the third quarter, Intercontinental Exchange’s average daily volume (ADV) increased 12% year over year while open interest increased 11% year over year.
Expenses are likely to have been on the higher side due to higher compensation and professional services, rent and occupancy, selling, general and administrative and depreciation and amortization. This, in turn, might have restricted margin expansion.
The company estimates third-quarter adjusted operating expenses in the range of $552 million to $562 million. This includes $9 million to $10 million related to acquisition of Simplifile and roughly $10 million related to the revenue reclassification. These expenses will be more than offset by around $25 million in revenues, which, in turn will be accretive to the bottom line.
The Zacks Consensus Estimate for earnings is pegged at 95 cents, indicating an increase of 11.7% from the prior-year quarter reported figure.
What Our Quantitative Model States
Our proven model predicts an earnings beat for Intercontinental Exchange in the soon-to-be-reported quarter because it has the right combination of two key ingredients. A stock needs to have both a positive Original post
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