Global market infrastructure company Intercontinental Exchange (NYSE:ICE) will be reporting earnings this Thursday before market open. Here’s what to look for.
Intercontinental Exchange beat analysts’ revenue expectations last quarter, reporting revenues of $2.67 billion, up 4.8% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ EBITDA estimates.
Is Intercontinental Exchange a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Intercontinental Exchange’s revenue to grow 13.8% year on year, improving from the 2.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Intercontinental Exchange has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Intercontinental Exchange’s peers in the financial exchanges & data segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Nasdaq delivered year-on-year revenue growth of 12.6%, beating analysts’ expectations by 1.1%, and CME Group reported revenues up 13%, topping estimates by 0.8%. Nasdaq traded up 6.7% following the results while CME Group was also up 3.6%.
Read our full analysis of Nasdaq’s results here and CME Group’s results here.
Investors in the financial exchanges & data segment have had steady hands going into earnings, with share prices flat over the last month. Intercontinental Exchange is up 1.6% during the same time and is heading into earnings with an average analyst price target of $187.53 (compared to the current share price of $155.33).
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