Intercontinental Exchange, Inc.ICE is the largest global stock and derivative exchange operator post the NYSE acquisition in Nov 2013. With disciplined expense management, strategic acquisitions and consistent focus on organic growth initiatives boost operating leverage.
Timely achievement of cost synergies and global expansion strategy are expected to contribute positively to earnings. Alongside, strong operating cash flow and improved financial leverage also help maintain a healthy balance sheet.
Intercontinental Exchange's tactical business model is crucial for countering risks from stiff competition, currency fluctuations, weak rate per contract and regulatory challenges.
Overall, Intercontinental Exchange surpassed estimates in three of the last four quarters that led to an average earnings surprise of +3.4 %.
Currently, Intercontinental Exchange has a Zacks Rank #4 (Sell), but that could definitely change following its second-quarter earnings report that has just been released. The key takeaways from this immediate announcement are highlighted below:
Earnings : Intercontinental Exchange earnings beat our expectations. Our consensus called for EPS of $3.67, while the company reported $3.68.
Revenue : Net revenues marginally missed our estimate. The company reported revenues of $1.15 billion, compared to our consensus of $1.16 billion.
Key Stats to Note : Total operating expenses soared 46.9% year over year to $570 million in the first-quarter. Operating income improved 26.4% to $584 million.
Long-term debt stood at $4.7 billion, inched up 0.02% from 2015-end level.
In the reported quarter, Intercontinental Exchange returned over $100 million through dividends.
The company expects adjusted operating expenses in the range of $495-$505 million for the second quarter of 2016 and $1.97- $2.0 billion for full-year 2016.
Check back later for our full write up on this Intercontinental Exchange earnings report later!
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INTERCONTNTLEXC (ICE): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
