Earnings Preview: InterContinental Exchange

InterContinentalExchange (NYSE:ICE) is slated to report Q1 earnings before the market open on Tuesday, May 5, at 8:30 am ET.

Guidance

Analysts are looking for EPS of 95c on revenue of $230.28M. The consensus range is 91c-$1.04 for EPS, and $218.03M-$235M for revenue, according to First Call.

Analyst Views

InterContinentalExchange on April 2 reported that Q1 FY09 average daily volume for its futures contracts was 988,964, or roughly flat compared to the same period a year ago. In Europe the company reported that it had advanced daily volume of 638,055, representing a 4% year-over-year increase. IntercontinentalExchange said its ICE Trust had cleared $45B of CDS transactions since it was launched March 9.

Goldman Sachs responded to IntercontinentalExchange's report by upgrading the stock to Conviction Buy from Neutral. The firm, which said that other analysts could increase their EPS estimates for the company, hiked its target for the stock to $90 from $60. But Keefe Bruyette downgraded the shares to Underperform from Market Perform. That's because it believes the stock has gotten ahead of the company's earnings power and is not pricing in risks from the transition in business mix and negative regulatory changes. The firm cut its target price on the shares to $71 from $73. In addition, BMO Capital downgraded IntercontinentalExchange to Market Perform from Outperform based on valuation. The firm set a target of $82 on the stock.