Earnings Preview: Intercontinental Exchange

Intercontinental Exchange (NYSE:ICE) is expected to report Q3 earnings before market open Thursday Oct. 30, with a conference call scheduled for 8:30 am.


Analysts are looking for EPS of $1.04 on revenue of $201.66M. The consensus range for EPS is 99c to $1.08, while the consensus range for revenue is $197.40M to $206.53M, according to First Call. The exchange has reported that its Q3 volume rose 12% year-over-year in Q3.

Analyst Views

Firms have recently had mixed views on Intercontinental. Raymond James reduced its Q3 EPS estimate for the company to $1.00 from $1.10, due to the firm's belief that the company will have weaker than expected trading commissions and a delay in launching a new clearing house. Bernstein recently lowered its target for the company to $150 from $180. The firm reduced its Q3 EPS for the company to $1.09 from $1.18, in order to reflect the firm's forecast for lower volumes and a delay in the opening of the company's European clearing business.

Meanwhile, Am Tech initiated Intercontinental with a Buy rating and a $115 target. The firm thinks the company is poised to exploit the growth in both OTC and exchange traded markets.

Intercontinental Exchange is expected to compete with CME Group (NASDAQ:CME) for the right to create a credit default swap clearing exchange. Investors will want to know if Intercontinental believes it has a good chance to win this battle, and how much the company believes it can earn by creating a CDS exchange.