Intercontinental Exchange Beats on Q1 Earnings and Revenues

Intercontinental Exchange ICE reported first-quarter 2025 adjusted earnings per share of $1.72, which beat the Zacks Consensus Estimate by 1.2%. The bottom line increased 16.2% on a year-over-year basis. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Intercontinental delivered solid results in all three segments. The performance reflected the strength of a balanced and diversified business as well as the results of the strategic investments it has made. The quarter witnessed record revenues, operating income and earnings per share growth.Performance in DetailIntercontinental’s net revenues were a record $2.5 billion, up 11.7% year over year. The top line beat the Zacks Consensus Estimate by 0.5%. Intercontinental Exchange Inc. Price, Consensus and EPS Surprise Intercontinental Exchange Inc. price-consensus-eps-surprise-chart | Intercontinental Exchange Inc. QuoteTotal operating expenses increased 2% year over year to $1.3 billion. This can be primarily attributed to higher compensation and benefits, acquisition-related transaction and integration costs, and rent and occupancy. Our estimate was also $1.2 billion. Adjusted operating expenses were $964 million in the quarter, up 3.7% year over year. Our estimate was $971.6 million. Adjusted operating income rose 11% year over year to $1.5 billion. Our estimate was $1.4 billion. Adjusted operating margin expanded 200 basis points (bps) year over year to 61%. Our estimate was 46.9%.Segment DetailsExchanges' net revenues were $1.4 billion, up 12% year over year. The Zacks Consensus Estimate was pegged at $1.3 billion. Adjusted operating income of $1 billion was up 12.8% year over year. Our estimate was $890.5 billion. The Zacks Consensus Estimate was pegged at $959 million. Adjusted operating margin expanded 100 bps year over year to 76%. Our estimate was 71.8%. Fixed Income and Data Services' revenues were $596 million, which increased 5% year over year. Our estimate was $618.9 million. The Zacks Consensus Estimate was pegged at $603 million.   Adjusted operating income rose 5.4% to $273 million. Our estimate was $259.9 million. The Zacks Consensus Estimate was pegged at $267 million. Adjusted operating margin remained flat year over year at 46%. Our estimate was 42%.Mortgage Technology’s revenues increased 2% to $510 million. Our estimate was $463.8 million. The Zacks Consensus Estimate was pegged at $512 million. Adjusted operating income was $203 million, which was up 9.7 % year over year. The Zacks Consensus Estimate was pegged at $239 million.  Our estimate was $278.1 million. Adjusted operating margin expanded 300 bps year over year to 40%. Our estimate was 51.4%.Financial UpdateAs of March 31, 2025, Intercontinental had cash and cash equivalents, including short-term restricted cash and cash equivalents of about $2 billion, up 1.6% from Dec. 31, 2024. Long-term debt of $17.3 billion inched up from 2024-end. Total equity was $28 billion as of March 31, 2025, up 1.2% from 2024-end. Operating cash flow was $966 million, down 4.3% year over year. Adjusted free cash flow was $833 million, up 5% year over year. Second-Quarter 2025 GuidanceGAAP operating expenses are expected in the range of $1.23-$1.24 billion. Adjusted operating expenses are projected to be between $980 million and $990 million. Non-operating expense is anticipated to be between $175 million and $185 million. The share count is forecast in the range of 573-579 million.Share Buyback and Dividend UpdateICE repurchased $241 million of its common stock and paid $278 million in dividends in the first quarter.The board of directors approved a dividend of 48 cents per share for the second quarter of 2025. The dividend will be paid out on June 30 to shareholders of record as of June 13. ICE expects the annual total dividend for 2025 to be $1.92 per shareZacks RankICE currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Peer ReleasesCME Group CME reported first-quarter 2025 operating income of $2.80 per share, which beat the Zacks Consensus Estimate by 0.4%. The bottom line improved 12% year over year.  CME Group’s revenues of $1.6 billion increased 10.4% year over year. The top line, however, missed the Zacks Consensus Estimate by 0.5%.Operating income increased 15.5% from the prior-year quarter to $1.1 billion. Our estimate was $1 billion. Given heightened economic uncertainty, ADV was a record 29.8 million contracts. Commodities grew 19%, financials increased 12%, and ADV outside the United States reached a new high of 8.8 million contracts, up 19% year over year. The total average rate per contract was 68.6 cents.Nasdaq NDAQ reported first-quarter 2025 adjusted earnings per share of 79 cents, beating the Zacks Consensus Estimate by 2%. The bottom line improved 25.4% year over year. Nasdaq’s net revenues of $1.2 billion increased 12.5% year over year. The top line beat the Zacks Consensus Estimate by 0.1%.Annualized Recurring Revenue (ARR) increased 8% year over year to $2.8 billion. Organic growth was 9%. Annualized SaaS revenues increased 14% and represented 37% of ARR. The company’s operating margin of 55% expanded 200 basis points year over year.Upcoming ReleaseCboe Global Markets CBOE will report first-quarter 2025 results on May 2, before market open. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $2.29, suggesting an increase of 6.5% from the year-ago quarter’s reported figure.CBOE’s earnings beat estimates in three of the last four quarters and missed in one.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intercontinental Exchange Inc. (ICE): Free Stock Analysis Report CME Group Inc. (CME): Free Stock Analysis Report Nasdaq, Inc. (NDAQ): Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks