Earnings from ICE and Church & Dwight

Two more earnings reports this morning. Intercontinental Exchange (ICE) earned $1.06 per share which was 10 cents more than expectations. I really like this stock. For the quarter, ICE’s adjusted operating margin was 59%.

Jeffrey C. Sprecher, ICE Chairman & Chief Executive Officer, said, “In the third quarter we generated record revenues and double-digit earnings-per-share growth. The combined strength of our futures business with compounding growth in our subscription-based Data & Listings business reflects our long-standing strategy of bringing transparency to global markets and enhancing customer workflows. As we look to 2020 and beyond, ICE’s diverse platform is well positioned to continue to serve our customers, generate growth and create value for our stockholders.”

ICE provides guidance for several metrics except EPS:

• ICE’s fourth quarter 2019 GAAP operating expenses are expected to be in a range of $637 million to $647 million and adjusted operating expenses are expected to be in a range of $562 million to $572 million.
• ICE’s fourth quarter 2019 data revenues are expected to be in a range of $555 million to $560 million.
• ICE’s interest expense is expected to be $71 million in the fourth quarter.
• ICE’s fourth quarter effective tax rate is expected to be in the range of 21.5% to 23.5%.
• ICE’s diluted share count for the fourth quarter is expected to be in the range of 557 million to 563 million weighted average shares outstanding.

The shares are currently up about 1% in today’s trading.

Church & Dwight (CHD) is another story. For Q3, the company made 66 cents per share.

Matthew Farrell, Chief Executive Officer, commented, “Q3 was another outstanding quarter with sales growth of 5.0%. Organic sales grew 3.6%, exceeding our 3.0% outlook. Our categories continue to grow and our market shares are healthy. 12 of our 15 domestic categories grew during the quarter and more than half have grown at least 8 consecutive quarters. In the domestic business, 9 out of 12 power brands met or exceeded category growth in the third quarter. The international business continues to perform strongly with reported sales growth of 7.1% and organic sales growth of 8.7%.”

Despite the earnings beat, CHD maintained its full-year guidance of $2.47 per share. The stock is down about 6% today.

Posted by on October 31st, 2019 at 1:17 pm


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