What's in Store for Intercontinental Exchange This Earnings Season?

Intercontinental Exchange Inc. ICE is expected to register an improvement in its top and bottom lines when it reports second-quarter 2025 results on July 31, before market open.

The Zacks Consensus Estimate for ICE’s second-quarter revenues is pegged at $2.52 billion, indicating 8.8% growth from the year-ago reported figure.

The consensus estimate for earnings is pegged at $1.77 per share. The Zacks Consensus Estimate for ICE’s second-quarter earnings has moved up 2.3% in the past 30 days. The estimate suggests a year-over-year increase of 16.4%.

What the Zacks Model Unveils for ICE

Our proven model does not conclusively predict an earnings beat for Intercontinental Exchange this time around. This is because the stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) for an earnings beat. This is not the case, as you can see below.

Earnings ESP: Intercontinental Exchange has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.77. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Intercontinental Exchange Inc. Price and EPS Surprise

Intercontinental Exchange Inc. price-eps-surprise | Intercontinental Exchange Inc. Quote

Zacks Rank: ICE carries a Zacks Rank #3 at present.

Factors Likely to Shape Q2 Results of ICE

Continued strong trends across fixed-income data and analytics and an acceleration in growth in other data and network services businesses are likely to have aided the second-quarter performance of Intercontinental Exchange. 

Fixed Income and Data Services revenues are likely to have benefited from growth in pricing and reference data business and strength in index business, growth in ICE Global Network offering, coupled with strength in consolidated feeds, desktop, and derivative analytics revenues. The Zacks Consensus Estimate is pegged at $595 million, while our estimate is pinned at $600.4 million. 

The Exchange segment is likely to have benefited from higher volumes in energy futures and options markets, financial futures and options markets, increased cash equities volume, improved data and connectivity services revenues, as well as listings revenues. The Zacks Consensus Estimate is pinned at $2 billion, while our estimate for the same is pegged at $1.3 billion. 

The Mortgage Technology segment’s revenues are expected to have gained from increased origination technology revenues, as well as closing solutions revenues and MSP mortgage servicing system revenues, and default management revenues. The Zacks Consensus Estimate for the segment’s revenues is pegged at $535 million. We expect the metric to be $587.8 million.

Expenses are likely to have increased owing to higher compensation and benefits, professional expenses, acquisition-related transaction costs, and technology and communication. We estimate expenses to increase 8.2% to $1 billion.

For the second quarter of 2025, adjusted expenses are expected in the range of $980 million to $990 million. Non-operating expense is expected to be between $175 million and $180 million.

Continued share buybacks are likely to have added to the upside.

ICE reported a 26% increase in second-quarter average daily volume (ADV). Total Natural Gas ADV was up 16% year over year, while Energy ADV increased 27% year over year. Total Financials ADV increased 30% in the second quarter.

Stocks to Consider

Here are some finance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

American International Group, Inc. AIG has an Earnings ESP of +0.18% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.58 per share, indicating a year-over-year increase of 36.2%. AIG’s earnings beat estimates in three of the last four quarters while missing in one.

Assurant, Inc. AIZ has an Earnings ESP of +1.99% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $4.43 per share, implying an increase of 8.5% from the year-ago reported figure.

AIZ’s earnings beat estimates in each of the last four quarters.

Cboe Global Markets, Inc. CBOE has an Earnings ESP of +0.66% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $2.42 per share, implying an increase of 12.5% from the year-ago reported figure.

CBOE’s earnings beat estimates in three of the last four quarters while missing in one.

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This article originally published on Zacks Investment Research (zacks.com).

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