Intercontinental Exchange beat estimates
Intercontinental Exchange (ICE) reported its 4Q15 earnings on February 4, 2016. It beat Wall Street analysts’ adjusted EPS (earnings per share) estimates of $3.01 with posted EPS of $3.27. The company benefited from volatile energy markets and increased data service revenues.
ICE’s 4Q15 earnings saw a 30% rise in EPS compared to 4Q14. The company reported consolidated revenues less transaction-based expenses of $875 million, a 9% increase compared to the prior-year quarter. Its profits grew mainly due to growth across its segments.
In a February 4, 2016, company press release, Intercontinental Exchange chair and CEO (chief executive officer) Jeffrey Sprecher said, “Our record performance in 2015 was driven by strong demand for risk management, trading, data and listings. We achieved our double-digit earnings growth target by focusing on our customers, innovating amid a dynamic market environment and with strong financial discipline. All of this has enabled us to again increase our quarterly dividend while investing in growth opportunities. Our acquisition of Interactive Data, together with many other strategic initiatives, positions us well to deliver strong earnings growth again in 2016.”
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 United States, the United Kingdom, Canada, Singapore, and Europe. It also includes 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 $3.2 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 US Broker-Dealers (IAI).
Intercontinental Exchange operates marketplaces for trading and clearing an array of securities and derivatives contracts across asset classes. These include 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 (New York Stock Exchange) data services.