IntercontinentalExchange Inc. Earnings Cheat Sheet: Fifth Consecutive Quarter of Double-Digit Growth

S&P 500 (NYSE:SPY) component IntercontinentalExchange Inc. (NYSE:ICE) reported net income above Wall Street’s expectations for the third quarter. IntercontinentalExchange operates the electronic futures and OTC marketplace for the trading of energy, soft agricultural commodities, credit default swaps and other financial products.

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IntercontinentalExchange Earnings Cheat Sheet for the Third Quarter

Results: Net income for the diversified investments company rose to $132.6 million ($1.80 per share) vs. $96.3 million ($1.29 per share) in the same quarter a year earlier. This marks a rise of 37.7% from the year earlier quarter.

Revenue: Rose 18.7% to $340.8 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ICE reported adjusted net income of $1.87 per share. By that measure, the company beat the mean estimate of $1.77 per share. Analysts were expecting revenue of $336.1 million.

Quoting Management: Said ICE Chairman and CEO Jeffrey C. Sprecher: “By recognizing the demand for market transparency, clearing and automation well in advance of regulatory requirements, ICE continues to deliver strong results. With a global reach and an innovative and diverse suite of products and risk management solutions, ICE is committed to continuing to lead in creating value for our customers and shareholders.” ICE SVP and CFO Scott Hill added: “This was another outstanding quarter for ICE, with record revenues, earnings and operating cash flow. Importantly, embedded within these strong results are on-going strategic investments that will enable us to continue to grow and outperform over the long term.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 19.4% and in the first quarter, the figure rose 27.4%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the second quarter, by 9 cents in the first quarter, and by 2 cents in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 9.8% to $325.2 million in the second quarter. The figure rose 18.7% in the first quarter from the year earlier and climbed 11.1% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from $1.62 a share to $1.64 over the last sixty days. At $6.85 per share, the average estimate for the fiscal year has risen from $6.67 sixty days ago.

Competitors to Watch: NYSE Euronext (NYSE:NYX), NASDAQ OMX Group, Inc. (NASDAQ:NDAQ), CME Group Inc. (NASDAQ:CME), CBOE Holdings, Inc (NASDAQ:CBOE), Deutsche Boerse AG (DB1), MarketAxess Holdings Inc. (NASDAQ:MKTX), Forestar Group Inc. (NYSE:FOR), Bank of America Corp. (NYSE:BAC), BGC Partners, Inc. (NASDAQ:BGCP), and Thomson Reuters Corp. (NYSE:TRI).

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(Source: Xignite Financials)

 

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