Intercontinental Exchange (ICE) Tops Q4 EPS by 2c
Intercontinental Exchange (NYSE: ICE) reported Q4 EPS of $0.71, $0.02 better than the analyst estimate of $0.69. Revenue for the quarter came in at $1.1 billion versus the consensus estimate of $1.14 billion.
"Amidst a volatile and dynamic environment, we delivered our eleventh consecutive year of record revenue," said ICE Chairman and CEO Jeffrey C. Sprecher. "Despite the challenges of market volatility driven by geopolitics, we achieved our objectives by working closely with our customers across trading, risk management and data to again deliver strong revenue growth, margin expansion and double-digit profit increases. We are excited about collaborating with our customers in 2017 given the range of ways we are working to serve their evolving trading, listing, data and risk management needs.”
Scott A. Hill, ICE CFO, added: “In the first year of our integration of Interactive Data, we surpassed our synergy target and met our ambitious revenue growth target while expanding margins. We also generated record operating cash flow of $2.1 billion in 2016, which enabled us to reduce our debt by approximately $1 billion, announce our third double digit increase in our dividend, and increase our share repurchases for 2017. Our strategy, execution, and disciplined capital allocation has led to significant value creation and future growth opportunities."
Financial Guidance
Based on ICE's outlook for continued solid top-line growth and ongoing integration and expense synergies, ICE provided the following guidance for 2017.
| GAAP | Non-GAAP | ||
| 2017 Data Services Revenue | +5% y/y | At least 6% in constant currency(2) | |
| 2017 Operating Expenses | $2.23-$2.27 billion | $1.94-$1.98 billion(1) | |
| 1Q17 Operating Expenses | $565-$575 million | $495-$505 million(1) | |
| 2017 Expense Synergies | ~$60 million | ||
| 2017 Interest Expense | ~$44 - $45 million per quarter | ||
| 2017 Capital Expenditures | $280 - $300 million for operational capital expenditures andcapitalized development$40 - $45 million for real estate capital expenditures | ||
| 2017 Effective Tax Rate | 28% - 31% | ||
| 2017 Weighted Average Shares Outstanding | 595 - 605 million shares reflected for expected 1Q17 share repurchases | ||
(1) 2017 and 1Q17 Non-GAAP operating expenses exclude amortization of acquisition-related intangibles.
(2) Data revenues in constant currency are calculated holding both the pound sterling and euro at the average exchange rate from 2016.
For earnings history and earnings-related data on Intercontinental Exchange (ICE) click here.