Earnings from Broadridge and ICE

We had two more earnings reports this morning. Broadridge Financial (BR) and Intercontinental Exchange (ICE) both reported earnings.

Broadridge earned $1.72 per share which was one penny more than expectations. The company is also raising its full-year dividend from $1.94 to $2.16 per share. This is the eighth-straight year that BR has raised its dividend by double-digit percentages.

“Fiscal year 2019 was a strong year as we generated double-digit EPS growth and executed against our strategic goals,” said Tim Gokey, Broadridge’s President and Chief Executive Officer. “Broadridge achieved 6% Recurring fee revenue growth and 11% Adjusted EPS growth. We also closed out the year on a very positive note as a strong fourth quarter powered another year of record Closed sales, and we made three tuck-in acquisitions that will further strengthen our business.

This was BR’s fiscal fourth quarter. The company made $4.66 per share for the year. For 2020, the company sees earnings growth of 8% to 12%. That implies a range of $5.03 to $5.22 per share. Wall Street had been expecting $5.14 per share. BR sees recurring fee growth of 8% to 10% and operating margins around 18%.

The stock is currently up about 1.6% today.

Intercontinental Exchange reported Q2 earnings of 94 cents per share. That beat estimates by two cents per share. Revenues rose 4% to $1.3 billion. Adjusted operating margin came in at 58%. ICE said that through June 30, it has returned over $1 billion to shareholders.

We are pleased to report our second quarter results, which extends our track record of revenue and earnings-per-share growth. These results reflect the strength of our global energy business as well as the value of compounding growth in our subscription-based Data & Listings business,” said ICE Chairman and Chief Executive Officer, Jeffrey C. Sprecher. “We remain focused on innovating for our customers, investing in future growth and creating value for our stakeholders.”

Scott A. Hill, ICE Chief Financial Officer, added: “Through the first half of the year, we have grown revenues, earnings-per-share and cash flows, enabling us to return over $1 billion to stockholders. As we look to the second half of 2019, we remain focused on disciplined investment in support of our strategic growth initiatives.”

ICE didn’t offer EPS guidance but it did for a few other metrics:

ICE’s third quarter 2019 GAAP operating expenses are expected to be in a range of $632 million to $642 million and adjusted operating expenses(1) are expected to be in a range of $552 million to $562 million.
ICE’s full year 2019 GAAP operating expenses are expected to be in a range of $2.50 billion to $2.52 billion and adjusted operating expenses(1) are expected to be in a range of $2.19 billion to $2.21 billion.
ICE’s third quarter 2019 data revenues are expected to be in a range of $550 million to $555 million.
ICE’s full year 2019 data revenues are expected to remain in a range of $2.19 billion to $2.24 billion.
ICE’s interest expense is expected to be $73 million in the third quarter.
ICE’s diluted share count for the third quarter is expected to be in the range of 560 million to 566 million weighted average shares outstanding.

Shares of ICE are up a little bit today.

Posted by on August 1st, 2019 at 10:03 am


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