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What to Expect for Intercontinental Exchange (ICE) Q4 Earnings

Zacks Equity Research

Intercontinental Exchange, Inc. ICE is slated to report fourth-quarter 2019 results on Feb 6, after market closes.

The company delivered positive surprises in all the last four quarters, the average being 4.8%.

Factors to Consider

For the to-be-reported quarter, the Zacks Consensus Estimate for the company’s earnings is pegged at 95 cents, indicating an upside of 1.1% from the year-ago reported figure.

In the fourth quarter, the company’s revenues are likely to have performed consistently well on the back of a compelling product and service portfolio, strategic buyouts, pricing and analytics. The Zacks Consensus Estimate for revenues is pegged at $1.3 billion, almost in line with the year-earlier reported figure.

The company expects the momentum in data revenue growth to continue for the quarter to be reported. Per the last earnings call, management expected fourth-quarter data service revenues in the range of $555-$560 million. Its positive pricing and analytics revenue trend is also likely to have continued in the fourth quarter.

Intercontinental Exchange might have taken initiatives to keep its costs under control. The company estimated fourth-quarter adjusted operating expenses in the range of $562-$572 million per its last earnings conference.

It is likely to have witnessed healthy cash flow in the quarter under review.

Interest expense is expected to have remained at an elevated level. The metric is predicted to be around $71 million for the fourth quarter.

What Our Quantitative Model States

Our proven model does not conclusively predict an earnings beat for Intercontinental Exchange this season. The right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Intercontinental Exchange has an Earnings ESP of 0.00%. This is because both the Zacks Consensus Estimate and the Most Accurate Estimate are pegged at 95 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Intercontinental Exchange Inc. Price and EPS Surprise

Zacks Rank: Intercontinental Exchange carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP in the combination makes surprise prediction difficult for the stock this time around.

Highlights of Q3 Earnings

Intercontinental Exchange reported third-quarter 2019 adjusted earnings per share of $1.06, beating the Zacks Consensus Estimate by 11.6%. Also, the bottom line improved 24.7% on a year-over-year basis.

The company witnessed an improved operating income and growth in business segments.

Stocks to Consider

Some stocks from the finance sector with the apt combination of elements to surpass estimates this reporting cycle are as follows:

CME Group Inc. CME is slated to announce fourth-quarter earnings on Feb 12. The stock has an Earnings ESP of +0.13% and is a #3 Ranked player.

American International Group, Inc. AIG is slated to report fourth-quarter earnings on Feb 13. It has a Zacks Rank of 3 and an Earnings ESP of +3.37%.

Assurant, Inc.    AIZ is set to report fourth-quarter earnings on Feb 11. The company is Zacks #3 Ranked and has an Earnings ESP of +0.62%.

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Click to get this free report American International Group, Inc. (AIG) : Free Stock Analysis Report Assurant, Inc. (AIZ) : Free Stock Analysis Report Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report CME Group Inc. (CME) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research