IntercontinentalExchange Beats and Raises Dividend

Good news this morning from IntercontinentalExchange (ICE). The stock exchange operator reported Q4 earnings of 71 cents per share, which was two cents better than estimates. Revenues rose 30.1% to $1.14 billion, which matched estimates.

“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.”

ICE also raised their quarterly dividend from 17 to 20 cents per share. For 2017, ICE sees revenues adjusted for currency rising by 6%.

Posted by on February 7th, 2017 at 11:21 am


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