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What's in the Cards for Intercontinental (ICE) in Q1 Earnings?

·4 min read

Intercontinental Exchange Group ICE is slated to report first-quarter 2022 earnings on May 5, before market open. ICE delivered an earnings surprise in each of the last four quarters, the average being 2.57%.

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 $1.9 billion, indicating a 4.9% increase from the year-ago reported figure.

In the to-be-reported quarter, the Fixed Income and Data Services segment revenues are likely to have benefited from solid index business, strong retention rate of existing customers, the addition of new customers, and higher purchases by existing customers. Growth in ICE Global Network offering along with strength in consolidated feeds and desktop revenues is also likely to have added to the upside.

The Zacks Consensus Estimate for Fixed Income and Data Services revenues is pegged at $493 million, indicating a 5.3% increase from the year-ago reported figure.

In the to-be-reported quarter, 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 7.9% increase from the year-ago reported figure.

The Mortgage Technology segment revenues are likely to have benefited from new customer growth and increased adoption of digital workflow tools across origination technology, closing solutions, and data and analytics. The Zacks Consensus Estimate for Mortgage Technology revenues is pegged at $328 million, indicating a 7.6% 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 first-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 $105-$110 million in the first quarter of 2022.

The Zacks Consensus Estimate for earnings is pegged at $1.42, indicating an increase of 5.9% from the prior-year quarter reported figure.

Intercontinental Exchange reported a soft average daily volume (ADV) for the first quarter of 2022. ADV of 6.7 million contracts per day was up 0.5% year over year in the first quarter due to higher volumes in Commodities.

Commodities ADV increased 5.1% to 3.9 million on the back of 6% higher Energy ADV offset by 2.3% lower Agriculture and Metals ADV. Financials ADV declined 5.6%, attributable to lower interest rate and foreign exchange volumes.

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

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

Arbor Realty Trust ABR has an Earnings ESP of +3.45% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter earnings is pegged at 44 cents, indicating a decrease of 15.4% from the year-ago reported figure.

ABR delivered an earnings beat in each of the four reported quarters of 2021.

BRP Group BRP has an Earnings ESP of +2.65% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter earnings is pegged at 51 cents, indicating an increase of 15.9% from the year-ago reported figure.

BRP delivered an earnings beat in each of the four reported quarters of 2021.

DiamondRock Hospitality DRH has an Earnings ESP of +18.52% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter earnings is pegged at 7 cents, indicating an increase of 158.3% from the year-ago reported figure.

DRH delivered an earnings beat in each of the four reported quarters of 2021.

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


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Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report

Arbor Realty Trust (ABR) : Free Stock Analysis Report

DiamondRock Hospitality Company (DRH) : Free Stock Analysis Report

BRP Group, Inc. (BRP) : Free Stock Analysis Report

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