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Intercontinental Exchange (ICE) Gears Up to Post Q2 Earnings

Zacks Equity Research
·4-min read

Intercontinental Exchange Group ICE is slated to report second-quarter 2022 earnings on Aug 4, before market open. ICE delivered an earnings surprise in three of the last four quarters, missing in one, the average being 1.98%.

Factors to Note

Solid performance at Exchanges, Fixed Income and Data Services, and Mortgage Technology segments is likely to have aided revenues in the to-be-reported quarter.  The Zacks Consensus Estimate for revenues is pegged at $1.8 billion, indicating a 6.4% increase from the year-ago reported figure.

Strong performance at index business, solid retention rate and the addition of new customers are likely to have aided Fixed Income and Data Services. Growth in ICE Global Network offering along with strength in consolidated feeds and desktop revenues is likely to have added to the upside.

The Zacks Consensus Estimate for Fixed Income and Data Services revenues is pegged at $506 million, indicating a 10.5% increase from the year-ago reported figure.

The Exchange segment is likely to have benefited from higher interest rate business and energy revenues, higher revenues from the global oil complex, increased exchange data services as well as growth in listings. The Zacks Consensus Estimate for Exchange revenues is pegged at $1 billion, indicating a 25% decrease from the year-ago reported figure.

Customer growth and increased adoption of digital workflow tools across origination technology, closing solutions, and data and analytics are likely to have added The Mortgage Technology segment revenues. The Zacks Consensus Estimate for Mortgage Technology revenues is pegged at $328 million, indicating a 9.7% decrease from the year-ago reported figure.

Expenses are likely to have increased, given an increase in compensation and benefits, acquisition-related transaction and integration costs and technology and communication.

ICE expects second-quarter 2022 operating expenses in the range of $900-$910 million. Adjusted operating expenses are expected in the range of $740-$750 million and adjusted non-operating expense is expected in the range of $110-$115 million for the second quarter of 2022. Non-operating expense is expected to be in the range of $150 million to $155 million.

The Zacks Consensus Estimate for earnings is pegged at $1.28, indicating an increase of 10.3% from the prior-year quarter reported figure.

Intercontinental Exchange reported a solid average daily volume (ADV) for the second quarter of 2022. ADV was up 12% year over yea. Total Energy ADV up 3% while Total Agriculture & Metals ADV up 2%. Financials ADV increased 26%.

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%. 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 and EPS Surprise
Intercontinental Exchange Inc. Price and EPS Surprise

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

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Zacks Rank: Intercontinental Exchange currently carries a Zacks Rank of 4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

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

Coinbase Global COIN has an Earnings ESP of +17.71% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter earnings is pegged at a loss of $3.04 cents, indicating a decrease of 147.4% from the year-ago reported figure.

COIN delivered an earnings beat in two of the last four reported quarters while missing in the other two.

American Equity Investment AEL has an Earnings ESP of +0.96 and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings is pegged at 79 cents, indicating a decrease of 19.4% from the year-ago reported figure.

AEL’s earnings beat estimates in two of the last four reported quarters and missed in the other two.

Assurant Inc. AIZ has an Earnings ESP of +2.34% and a Zacks Rank of 1. The Zacks Consensus Estimate for second-quarter 2022 earnings is pegged at $3.21, indicating an increase of 7.4% from the year-ago reported figure.

AIZ’s earnings beat estimates in the last four reported quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report
 
Assurant, Inc. (AIZ) : Free Stock Analysis Report
 
American Equity Investment Life Holding Company (AEL) : Free Stock Analysis Report
 
Coinbase Global, Inc. (COIN) : Free Stock Analysis Report
 
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