ICE shares fall 5% as earnings, revenue miss expectations

ATLANTA & NEW YORK – Intercontinental Exchange (NYSE: NYSE:), a leading operator of global exchanges and clearing houses, reported first-quarter earnings that slightly missed analyst expectations.

The company announced adjusted earnings per share (EPS) of $1.48, just shy of the consensus estimate of $1.49. Revenue also fell short of expectations, coming in at $2.3 billion against the anticipated $2.31 billion.

The company’s stock price responded negatively to the earnings release, falling by 5.46%.

ICE’s full-year 2024 guidance for Mortgage Technology pro forma segment revenue growth is projected to be flat to a low single-digit decrease. Additionally, the company expects full-year 2024 GAAP operating expenses to range between $4.87 billion and $4.90 billion, with adjusted operating expenses anticipated to be between $3.79 billion and $3.82 billion.

For the second quarter of 2024, ICE forecasts GAAP operating expenses to be between $1.21 billion and $1.22 billion, and adjusted operating expenses to range from $945 million to $955 million. The company also estimates second-quarter GAAP non-operating expenses to be in the range of $225 million to $230 million, with adjusted non-operating expenses expected to be between $205 million and $210 million. The diluted share count for the second quarter is projected to be between 572 million and 578 million weighted average shares outstanding.

ICE announced a $0.45 per share dividend for the second quarter of 2024, marking a 7% increase from the $0.42 per share dividend paid in the same quarter of the previous year. This dividend is payable on June 28, 2024, to stockholders of record as of June 13, 2024, with the ex-dividend date also set for June 13, 2024.

In a statement addressing the quarter’s results, ICE’s management emphasized their commitment to delivering value to shareholders and highlighted the dividend increase as a testament to the company’s strong cash flow and confidence in its business model.

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