Intercontinental Exchange Inc. ICE is slated to report first-quarter 2024 earnings on May 2, before market open. ICE delivered an earnings surprise in each of the last four quarters, the average beat being 3.12%.
Factors to Note
Solid performance at Exchanges, and Fixed Income and Data Services segments is likely to have aided revenues in the to-be-reported quarter. The Zacks Consensus Estimate for revenues is pegged at $2.30 billion, indicating an increase of 21.2% from the year-ago reported number.
Higher transaction and recurring revenues, growth in other data and network services, as well as fixed income data and analytics products, coupled with strength in CDS clearing, are likely to have favored the Fixed Income and Data Services business. The Zacks Consensus Estimate for the segment’s revenues is pegged at $580 million, indicating a 3% rise from the year-ago reported figure. We expect the metric to be $571.3 million.
The Exchange segment is likely to have benefited from higher transaction revenues, an increase in interest rate business, record energy revenues, a rise in oil complex and growth in global natural gas revenues. 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 $509 million, indicating a two-fold increase from the year-ago reported figure. We expect the metric to be $534.1 million.
Expenses are likely to have benefited from higher legal expenses primarily related to the Black Knight acquisition, a rise in bonus and noncash performance-based restricted stock compensation accruals, increased hardware and software support costs, other improvements in rent and utility costs, elevated travel and entertainment expenses, bad debt expense and growth in internally developed software assets.
ICE expects first-quarter 2024 GAAP operating expenses in the range of $1.175-$1.185 billion. Adjusted operating expenses are expected in the range of $930-$940 million. GAAP non-operating expenses are expected in the range of $245-$250 million. Adjusted non-operating expenses are projected in the band of $215-$220 million.
The Zacks Consensus Estimate for earnings is pegged at $1.49 per share, indicating an increase of 5.6% from the prior-year quarter’s reported figure.
ICE reported a 16% increase in first-quarter average daily volume (ADV). Total Natural Gas ADV was up 34% year over year. Total Agricultural & Metals ADV increased 11% and total Financials ADV rose 5% 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 +0.54%. This is because the Most Accurate Estimate of $1.50 is pegged higher than the Zacks Consensus Estimate of $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 3.
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 has an Earnings ESP of +0.35% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $2.04 per share, indicating an increase of 7.4% 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.
Coinbase Global, Inc. COIN has an Earnings ESP of +36.53% and sports a Zacks Rank of 1 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at 89 cents, indicating a surge of 493.3% from the year-ago reported figure.
COIN’s earnings beat estimates in each of the last four quarters.
MarketAxess Holdings Inc. MKTX has an Earnings ESP of +0.75% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $1.85, indicating a decrease of 5.6% from the year-ago reported figure.
MKTX’s earnings beat estimates in three of the last four reported quarters and missed in one.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Only $1 to See All Zacks’ Buys and Sells
We’re not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.
Thousands have taken advantage of this opportunity. Thousands did not – they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.
Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report
Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report
MarketAxess Holdings Inc. (MKTX) : Free Stock Analysis Report
Coinbase Global, Inc. (COIN) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
