Earnings Preview: Intercontinental Exchange

Intercontinental Exchange (NYSE:ICE) is expected to report Q4 earnings before market open Tuesday, February 10 with a conference call scheduled for 8:30 am ET.


The consensus estimate for EPS is 83c and the consensus estimate for revenue is $212.87M, according to First Call. The consensus range for EPS is 78c-88c, while the consensus range for revenue is $207M-$238.34M. In a negative sign for Intercontinental Exchange, NYSE Euronext (NYSE:NYX) Monday reported weaker than expected Q4 results. NYSE took a pretax, non-cash charge of $1.59B related to the goodwill and intangible assets of NYSE Group and Euronext. Intercontinental Exchange recently announced that its total volume fell 5% to 20.4M in January 2009. Last month, Intercontinental Exchange, or ICE, reported that its total futures volume for December was 18.6M, a jump of 36% compared with December 2007.

Analyst Views

However, several research firms downgraded the company after it announced its December volumes. Am Tech downgraded the stock to Neutral from Buy. The firm reported that the company's OTC energy trading volumes were significantly lower than expected. Noting that OTC energy trades provide about 38% of ICE's revenue, Am Tech predicted that the stock would be range bound until visibility on these trades increase. Meanwhile, UBS downgraded Intercontinental Exchange to Neutral from Buy due to weaker OTC volumes, as well as what the firm sees as a negative shift in U.S. futures pricing, and reduced expense flexibility in the near-term. Finally, Goldman Sachs also dropped ICE to Neutral from Buy.