Intercontinental to Report Q4 Earnings: Is a Beat in Store?

Intercontinental Exchange Inc. ICE is slated to report fourth-quarter 2024 earnings on Feb. 6, before market open. ICE delivered an earnings surprise in two of the last four quarters while matching estimates in the other two, the average beat being 1.28%.See the Zacks Earnings Calendar to stay ahead of market-making news.Factors to NoteContinued strong trends across fixed-income data and analytics and an acceleration in growth in other data and network services businesses are likely to have aided the fourth-quarter performance of Intercontinental Exchange. The Zacks Consensus Estimate for revenues is pegged at $2.3 billion, indicating an increase of 5.3% from the year-ago reported number.Fixed Income and Data Services revenues are likely to have benefited from higher CDS clearing activity, growing corporate and municipal bond activity, growth in pricing and reference data business and strength in index business, growth in ICE Global Network offering, coupled with strength in consolidated feeds and desktop revenues. Our estimate is pegged at $616.5 million.The Exchange segment is likely to have benefited from higher transaction revenues, driven by an increase in interest rate business, solid energy revenues and a rise in commodities volume as well as financials volume. An expanded global energy and environmental network is likely to have added to the upside. The Zacks Consensus Estimate and our estimate for the segment’s revenues are both pegged at $1.8 billion.The Mortgage Technology segment’s revenues are expected to have gained from improvement in data and analytics owing to the continued adoption of digital solutions. The Zacks Consensus Estimate for the segment’s revenues is pegged at $497 million. We expect the metric to be $463.8 million.Expenses are likely to have increased owing to higher compensation and benefits, professional expense, acquisition-related transaction costs, and technology and communication. We estimate expenses to increase 1.8% to $968.9 million.For the fourth quarter of 2024, GAAP operating expenses are expected in the range of $1.23-$1.24 billion. Adjusted operating expenses are projected to be between $977 million and $987 million. GAAP and adjusted non-operating expenses are both expected to be in the range of $180-$185 million.The Zacks Consensus Estimate for earnings is pegged at $1.49 per share, indicating an increase of 5.3% from the prior-year quarter’s reported figure. Continued share buybacks are likely to have added to the upside.ICE reported a 22% increase in fourth-quarter average daily volume (ADV). Total Natural Gas ADV was up 33% year over year, while Energy Open Interest ADV increased 15% year over year. Total Financials OI increased 40% in the fourth quarter.What the Zacks Model SaysOur proven model predicts an earnings beat for Intercontinental this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Earnings ESP: Intercontinental has an Earnings ESP of +0.09%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Intercontinental Exchange Inc. Price and EPS Surprise Intercontinental Exchange Inc. price-eps-surprise | Intercontinental Exchange Inc. QuoteZacks Rank: ICE currently carries a Zacks Rank of 3.Other Stocks to ConsiderHere are some other finance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:Unum Group UNM has an Earnings ESP of +0.23% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2024 earnings is pegged at $2.13, indicating a year-over-year increase of 19%. You can see the complete list of today’s Zacks #1 Rank stocks here.UNM’s earnings beat estimates in three of the last four reported quarters and missed in one.Allstate Corporation ALL has an Earnings ESP of +3.93% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2024 earnings is pegged at $6.51, indicating a year-over-year increase of 11.9%. ALL’s earnings beat estimates in each of the last four reported quarters.Principal Financial Group PFG has an Earnings ESP of +3.03% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2024 earnings is pegged at $1.95, indicating a year-over-year increase of 6.6%. PFG’s earnings beat estimates in one of the last four reported quarters while missing in the other three.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want 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 The Allstate Corporation (ALL): Free Stock Analysis Report Principal Financial Group, Inc. (PFG): Free Stock Analysis Report Unum Group (UNM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks