Barclays has raised its price target for IntercontinentalExchange (ICE, Financial), moving it from $198 to $206 while maintaining an Overweight rating on the stock. As the company approaches its second-quarter earnings release, Barclays notes that trading activity has remained strong throughout the period. Additionally, the Federal funds rate is expected to continue bolstering net interest income for the remainder of the year. The firm perceives the current trading landscape as quite strong, suggesting positive momentum for ICE moving forward.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Intercontinental Exchange Inc (ICE, Financial) is $196.00 with a high estimate of $237.00 and a low estimate of $158.00. The average target implies an upside of 7.60% from the current price of $182.16. More detailed estimate data can be found on the Intercontinental Exchange Inc (ICE) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, Intercontinental Exchange Inc's (ICE, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Intercontinental Exchange Inc (ICE, Financial) in one year is $120.55, suggesting a downside of 33.82% from the current price of $182.16. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Intercontinental Exchange Inc (ICE) Summary page.
ICE Key Business Developments
Release Date: May 01, 2025
- Earnings Per Share (EPS): $1.72, up 16% year-over-year.
- Net Revenue: $2.5 billion, an 8% increase year-over-year.
- Adjusted Operating Expenses: $964 million, below the low end of guidance.
- Adjusted Operating Income: $1.5 billion, up 11% year-over-year.
- Capital Returned to Shareholders: $519 million, including $241 million in share repurchases.
- Leverage: Ended the quarter under 3.2 times EBITDA.
- Exchange Segment Net Revenues: $1.4 billion, up 12% year-over-year.
- Transaction Revenues: Nearly $1 billion, up 16% year-over-year.
- Recurring Revenues: $368 million, up 3% year-over-year.
- Fixed Income and Data Services Revenues: $596 million, with transaction revenues of $125 million.
- ICE Bonds Revenue: Increased by 16% year-over-year.
- Recurring Revenues in Fixed Income: $471 million, up 5% year-over-year.
- Mortgage Technology Revenues: $510 million.
- Recurring Revenues in Mortgage Technology: $397 million.
- Transaction Revenues in Mortgage Technology: $113 million.
- Energy Revenues: Increased 23% year-over-year.
- Interest Rate Business Growth: 18% increase year-over-year.
- NYSE Cash Equities and Options Revenues: 21% growth year-over-year.
- ETF AUM: Reached a record $684 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Intercontinental Exchange Inc (ICE, Financial) reported record first-quarter earnings per share of $1.72, up 16% year-over-year.
- Net revenue increased by 8% to a record $2.5 billion, with growth across all three operating segments.
- The company returned $519 million of capital to shareholders, including $241 million in share repurchases.
- Record transaction revenues of nearly $1 billion were driven by significant growth in interest rate, NYSE cash equities, options, and energy markets.
- The fixed income and data services segment achieved record revenues of $596 million, with strong growth in the muni and corporate bond trading businesses.
Negative Points
- Second quarter adjusted operating expenses are expected to increase to between $980 million and $990 million, driven by currency fluctuations and merit increases.
- The mortgage technology segment faces potential risks from the Rocket purchase of Mr. Cooper, which could impact future business.
- There are concerns about the impact of geopolitical changes, such as a potential Ukraine-Russia peace, on energy market volumes.
- The fixed income data line experienced a sequential decline due to fewer onetime revenues and equity market pressures.
- The company faces challenges in maintaining growth amidst macroeconomic uncertainties and potential delays in bank implementations.
