Intercontinental Exchange (NYSE: ICE) is scheduled to report its fiscal This fall 2022 outcomes on Thursday, February 2, 2023. We anticipate Intercontinental Alternate to edge previous the consensus estimates of revenues and earnings. The alternate surpassed the road expectations within the final quarter, with web revenues (whole revenues minus transaction-based bills) growing by 1% y-o-y to $1.81 billion. It was primarily because of development in exchange-driven revenues and glued revenue & knowledge providers class, partially offset by decrease mortgage know-how revenue. We anticipate the identical pattern to proceed in This fall.
Our forecast signifies that Intercontinental Exchange’s valuation is $127 per share, which is nineteen% above the present market worth of $107. Our interactive dashboard evaluation on Intercontinental Exchange’s Earnings Preview has extra particulars.
(1) Revenues anticipated to high the consensus estimates
Intercontinental Alternate’s revenues elevated 6% y-o-y to $7.26 billion within the first three quarters of 2022, translating right into a 4% rise in web revenues to $5.52 billion. It was primarily pushed by a ten% y-o-y rise within the web clearing & transaction charges, adopted by a marginal development in non-trading revenues.
- Clearing & transaction charges (web) elevated 10% y-o-y to $2.05 billion within the first 9 months of 2022. Q1 2022. We anticipate the identical momentum to proceed within the fourth quarter.
- ICE generates roughly 60% of its web revenues from non-trading revenue. The section posted marginal development within the first three quarters of the yr. It was primarily because of decrease mortgage know-how revenues, offsetting the advance in fixed-income and knowledge providers companies. We anticipate the non-trading revenues to see optimistic development in This fall.
- Total, we forecast Intercontinental Alternate’s whole revenues to the touch $9.6 billion for FY2022.
Trefis estimates Intercontinental Alternate’s fiscal This fall 2022 web revenues to be round $1.80 billion, 1% above the $1.78 billion consensus estimate.
2) EPS to marginally beat the consensus estimates
Intercontinental Alternate Q3 2022 adjusted earnings per share (EPS) is anticipated to be $1.28 per Trefis evaluation, marginally above the consensus estimate of $1.26. The alternate’s adjusted web revenue was diminished by 60% y-o-y to $1.02 billion within the first 9 months of 2022. It was primarily because of a big drop within the “different revenue” from $1.02 billion to -$1.53 billion. That mentioned, we anticipate the profitability numbers to see some enchancment in This fall. Total, Intercontinental Alternate’s annual EPS determine is prone to be round $5.32 for FY2022.
(3) Inventory worth estimate is nineteen% larger than the present market worth
We arrive at Intercontinental Alternate’s valuation, utilizing an EPS estimate of round $5.32 and a P/E a number of of slightly below 24x in fiscal 2022. This interprets right into a worth of $127, which is nineteen% above the present market worth of round $107.
Be aware: P/E Multiples are primarily based on Share Value on the finish of the yr and reported (or anticipated) Adjusted Earnings for the total yr
What should you’re on the lookout for a extra balanced portfolio as an alternative? Our high-quality portfolio and multi-strategy portfolio have overwhelmed the market constantly because the finish of 2016.
| Returns | Jan 2023 MTD [1] |
2023 YTD [1] |
2017-23 Complete [2] |
| ICE Return | 4% | 4% | 89% |
| S&P 500 Return | 5% | 5% | 80% |
| Trefis Multi-Technique Portfolio | 9% | 9% | 243% |
[1] Month-to-date and year-to-date as of 1/31/2023
[2] Cumulative whole returns because the finish of 2016
Make investments with Trefis Market Beating Portfolios
See all Trefis Price Estimates
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
