Shares of Georgia-based Intercontinental Exchange, Inc. (ICE) closed 1.9% higher on Thursday after the company reported excellent financial results for the third quarter of 2021.
The company operates regulated exchanges, clearing houses and listings venues for commodity, financial, fixed income and equity markets in the U.S., the U.K., the European Union, Singapore, Israel and Canada.
It reported adjusted earnings of $1.30 per share, up 34% year-over-year. The figure beat the Street’s estimate of $1.22 per share.
Net revenues of $1.8 billion surpassed analysts’ expectations of $1.75 billion and reflected a 28% year-over-year increase. (See Insiders’ Hot Stocks on TipRanks)
Net revenues of the Exchanges segment grew 17% to $959 million; the Fixed Income and Data Services Segment’s net revenues rose 6% to $477 million; and the Mortgage Technology segment generated net revenues of $366 million.
The Chief Financial Officer of Intercontinental Exchange, Warren Gardiner, said, “In the third quarter, we generated double-digit revenue, operating income and earnings per share growth. This strong performance, including double-digit growth in our recurring revenues, was driven by contributions from all three business segments and is a testament to the power of our diverse business model.”
Notably, the company has provided guidance for the fourth quarter of 2021. It expects total recurring revenues to range from $892 million to $907 million.
Additionally, total recurring revenues for the Exchanges segment are projected to be in the range of $330 million to $335 million. The Fixed Income and Data Services segment is anticipated to generate total recurring revenues between $415 million and $420 million, and total recurring revenues of the Mortgage Technology segment are likely to range from $147 million to $152 million.
Overall, the stock has a Strong Buy consensus rating based on 10 Buys and 1 Hold. The average Intercontinental Exchange price target of $142.80 implies 5.4% upside potential. Shares have gained 41.6% over the past year.