IntercontinentalExchange Inc. Earnings: Double-Digit Growth Again

S&P 500 (NYSE:SPY) component IntercontinentalExchange Inc. (NYSE:ICE) reported its results for the fourth 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 Fourth Quarter

Results: Net income for the diversified investments company rose to $126.8 million ($1.73 per share) vs. $99.1 million ($1.34 per share) in the same quarter a year earlier. This marks a rise of 27.9% from the year earlier quarter.

Revenue: Rose 14.8% to $327.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: IntercontinentalExchange Inc. reported adjusted net income of $1.76 per share. By that measure, the company beat the mean estimate of $1.68 per share. Analysts were expecting revenue of $325.9 million.

Quoting Management: ICE Chairman and CEO Jeffrey C. Sprecher said: “For the eighth consecutive year, ICE’s markets grew by serving the risk management needs of global markets. Despite broader market uncertainty, we achieved record results while building upon our existing business to serve more customers and markets. We continue to deliver value for shareholders through growth and innovation. From investments in Brazil, to refinements of our most important benchmark contracts, to significant enhancements of our trading platform and clearing services, the ICE team delivered numerous initiatives to strengthen our platform for growth,” said Scott Hill, ICE SVP and CFO. “With a focus on disciplined investment and capital deployment, we continue to produce solid operating leverage and deliver very strong returns on invested capital.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 37.7% and in the second quarter, the figure rose 19.4%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 10 cents in the third quarter, by 3 cents in the second quarter, and by 9 cents in the first quarter.

Revenue has risen the past four quarters. Revenue increased 18.7% to $340.8 million in the third quarter. The figure rose 9.8% in the second quarter from the year earlier and climbed 18.7% in the first quarter from the year-ago quarter.

Looking Forward: For the next quarter, analysts are growing pessimistic about the company’s expected results. The average estimate for the first quarter of the next fiscal year is $1.91 per share, dropping from $1.92 a month ago. For the fiscal year, the average estimate has moved down from $7.04 a share to $7.01 over the last sixty days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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