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What to Expect From Intercontinental Exchange (ICE) Q2 Earnings

Intercontinental Exchange Group ICE is slated to report second-quarter 2020 results on Jul 30, before market open. The company delivered a negative earnings surprise of 4.07% in the last reported quarter.

Let’s see how things have shaped up for this announcement.

Factors to Consider

Intercontinental Exchange’s second-quarter revenues are likely to have benefited from a compelling product and service portfolio along with a broad range of risk management services and strength in global data services and energy franchise. The Zacks Consensus Estimate for revenues is pegged at $1.4 billion, indicating 6.9% increase from the year-ago reported figure.

The company estimates the continued momentum in data revenue growth to drive global data services, Pricing & Analytics as well as connectivity offerings. Data revenues are expected between $565 million and $57 million. The company expects higher annual subscription value to support revenues.

Pricing & Analytics is likely to have benefited from solid pricing and reference data business and fixed income index business. Management estimates growth in Pricing & Analytics to be stable in the second quarter.

In the second quarter, Intercontinental Exchange delivered soft average daily volume.

Expenses are likely to have been on the higher side due to increase in compensation and benefits, acquisition-related transaction and integration as well as technology and communication costs. This, in turn, might have restricted margin expansion and hurt the company’s overall performance.

The company estimates second-quarter adjusted expenses to be in the range of $575 million to $585 million.

The Zacks Consensus Estimate for earnings is pegged at $1.04, indicating an increase of 10.6% from the prior-year quarter reported figure.

Intercontinental Exchange Inc. Price and EPS Surprise

Intercontinental Exchange Inc. Price and EPS Surprise

Intercontinental Exchange Inc. price-eps-surprise | Intercontinental Exchange Inc. Quote

What the Zacks Model Says

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. That is not the case as you can see below.

Earnings ESP: Intercontinental Exchange has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.04. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: Intercontinental Exchange currently carries a Zacks Rank of 3.

Stocks to Consider

Some insurance stocks with the right combination of elements to come up with an earnings beat this time around are:

American Financial Group AFG has an Earnings ESP of +21.45% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cboe Global Markets CBOE has an Earnings ESP of +0.48% and a Zacks Rank #3.

Allstate Corporation ALL has an Earnings ESP of +11.10% and a Zacks Rank of 3.

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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.

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