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Intercontinental Exchange Expanded on Equities and Commodities

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Oct. 29 2015, Updated 1:51 p.m. ET

ICE missed estimates

Intercontinental Exchange (ICE) reported its 3Q15 earnings on October 28, 2015. The company missed Wall Street analysts’ adjusted earnings per share (or EPS) estimates of $2.92 per unit, with posted EPS of $2.91 per unit.

Its 3Q15 earnings saw a 24% rise in adjusted EPS compared to 3Q14. The company reported consolidated revenues of $816 million, up by 10% as compared to the prior-year quarter. The company’s profit grew mainly due to growth across its segments and reduced operating expenses. The company’s adjusted net profits rose by 21% to $323 million in 3Q15.

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In an October 28 company press release, Intercontinental chair and CEO, Jeffrey Sprecher, noted, “Our third quarter performance represents our fourth consecutive quarter of double-digit earnings growth. This was driven by strong performance in our commodities, cash equities, data services and listings businesses. Our focus on our customers and on our strategic objectives is providing near-term and long-term growth across all of our businesses.”

ICE operates regulated exchanges

Intercontinental Exchange is a global operator of regulated exchanges, clearing houses, and data services for financial and commodity markets. The company’s regulated exchanges include futures exchanges in the US, the United Kingdom, Canada, Singapore, and Europe, three securities exchanges, and two equity options exchanges. It also operates OTC (over the counter) markets for physical energy and CDS (credit default swap). The company generated total revenues of $3 billion in the last fiscal year compared to its peers with the following revenues:

  • NASDAQ OMX Group (NDAQ) – $3.5 billion
  • CME Group (CME) – $3.1 billion
  • CBOE Holdings (CBOE) – $0.6 billion

Together, these companies form 24.6% of the iShares U.S. Broker-Dealers ETF (IAI).

Intercontinental Exchange operates marketplaces for trading and clearing an array of securities and derivatives contracts across asset classes including energy and agricultural commodities as well as equities and equity derivatives. Its products and services include regulated energy futures contracts, regulated agricultural futures contracts, regulated financial futures contracts, securities products and listings, credit derivatives products, OTC energy products, Intercontinental Exchange data services, and NYSE data services.

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