Intercontinental Exchange Inc. ice is scheduled to report in the third quarter of 2022 salary November 3, before the market opens. ICE has delivered an earnings surprise in each of the last four quarters, averaging 2.76%.
Factors to consider
Strong performance in the exchanges, fixed income and data services, and mortgage technology segments likely contributed to earnings in the reported quarter.
Higher transaction revenues, growth in ICE bonds, resilience of the consolidated feed business, and continued growth in ICE’s global network are likely to have contributed to fixed income and data services. Strength in fixed income and CDS clearing due to increased volatility in global markets likely contributed to the growth.
The Zacks Consensus Estimate for fixed income and data services revenue is $521 million, which represents an increase of 9.2% year-over-year.
The exchanges segment likely benefited from higher futures interest rates, higher derivatives revenues, strong demand for energy exchange data, growth in the mix of energy and financial futures and options, and sustained gains from record listings in in 2021.
Lower mortgage loan originations likely impacted Mortgage Technology segment revenues. The Zacks Consensus Estimate for mortgage technology revenue is $287 million, representing a 21.6% year-over-year decline.
Expenses likely increased due to higher acquisition-related transaction and integration, technology and communications, depreciation and amortization costs.
ICE expects operating expenses to be $903 million to $913 million and adjusted operating expenses to be $743 million to $753 million in the third quarter of 2022. Non-operating expenses are expected to be in the range of $180 million to $185 million. Adjusted non-operating expenses are expected to be in the range of $115 million to $120 million.
The Zacks Consensus Estimate for earnings is pegged at $1.26, indicating a decline of 3.1% from the year-ago quarter.
Intercontinental Exchange reported a 5% increase in average daily volume (ADV) in the third quarter. While North American natural gas ADV rose 3%, total financial ADV increased 35%. Aggregate agriculture and metals ADV rose 4%, while equity index ADV rose 12%.
What the Zacks Model Says
Our validated model predicts higher earnings for Intercontinental Exchange this time around. A combination of positive Profit ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Profit ESP: Intercontinental Exchange has a profit ESP of +0.03%. You can find the best stocks to buy or sell before they are announced in our ESP income filter.
Price and earnings per share of Intercontinental Exchange Inc
Intercontinental Exchange Inc. price-eps-surprise | Quote from Intercontinental Exchange Inc
Zacks Rank: Intercontinental Exchange currently has a Zacks Rank of 3. You see a complete list of today’s Zacks #1 Rank stocks here.
Other promotions to consider
Some financial stocks with the right combination of elements to come up with the best profit this time:
Blackstone Secured Lending Fund BXSL has an Earnings ESP of +3.45% and a Zacks Rank of 3. The Zacks Consensus Estimate for Q3 salary pegged at 68 cents, representing a 7.9% year-over-year increase.
BXSL’s earnings beat estimates in two of the last four quarters and missed forecasts in the other two.
Macro Bank Inc. BMA has an Earnings ESP of +28.68% and a Zacks Rank of 2. The Zacks Consensus Estimate for Q3 salary pegged at 65 cents, representing a 43.9% year-over-year decline.
BMA’s earnings beat estimates in three of the last four quarters and came in below one.
Banca De Chile MPB has an Earnings ESP of +10.15% and a Zacks Rank of 3. The Zacks Consensus Estimate for Q3 salary pegged at 69 cents, representing a 53.3% year-over-year increase.
BCH’s earnings beat estimates in two of the last four quarters and missed forecasts in the other two.
Stay tuned for future earnings announcements with help Zacks Earnings Calendar.
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