Intercontinental Exchange Reports Strong Third Quarter 2017 GAAP Diluted EPS of $0.62 on Revenues of $1.1 billion, +6% y/y

Intercontinental Exchange Reports Strong Third Quarter 2017 GAAP Diluted EPS of $0.62 on Revenues of $1.1 billion, +6% y/y

Intercontinental Exchange Reports Strong Third Quarter 2017 GAAP Diluted EPS of $0.62 on Revenues of $1.1 billion, +6% y/y

The FINANCIAL -- Intercontinental Exchange on November 2 reported financial results for the third quarter of 2017.

For the quarter ended September 30, 2017, consolidated net income attributable to ICE was $369 million on $1.1 billion of consolidated revenues less transaction-based expenses. Third quarter GAAP diluted earnings per share (EPS) were $0.62, up 9% year-over-year. On an adjusted basis, net income was $430 million in the third quarter, and diluted EPS were $0.73, up 14% year-over-year, according to Intercontinental Exchange.

“We are pleased to again deliver strong revenue and earnings growth while executing on our strategic objectives to serve our customers and shareholders," said ICE Chairman and CEO Jeffrey C. Sprecher. "We are investing to grow our trading, data and risk management solutions across geographies and asset classes and continue to see new ways to serve our customers across their workflow, from capital efficient clearing, to new trading and data products, to supporting regulatory compliance and connectivity needs. Our recent acquisitions demonstrate this focus and we look forward to leveraging our integrated offering to serve global markets as they evolve."

Scott A. Hill, ICE CFO, added: "Through the first nine months of the year we have grown revenues and are now on track to exceed our original 2017 synergy target even as we invest for continued growth in 2018. Our disciplined and balanced approach to shareholder value creation has enabled us to strategically invest in our business, while also returning over $1 billion to shareholders through buybacks and dividends so far in 2017."

Third Quarter 2017 GAAP Results

Third quarter 2017 consolidated revenues, less transaction-based expenses, were $1.1 billion. Trading and clearing segment revenues, less transaction-based expenses, were $523 million in the third quarter 2017, up 8% compared to the prior third quarter. Data and listings segment revenues were $620 million in the third quarter of 2017, up 4% compared to the prior third quarter, including data services revenues of $518 million, up 6% and listings revenues of $102 million, down 3% over the prior third quarter.

Consolidated operating expenses were $547 million for the third quarter of 2017. Consolidated operating income for the third quarter was $596 million and operating margin was 52%. The effective tax rate for the third quarter was 33%.

Unrestricted cash was $419 million and outstanding debt was $6.1 billion as of September 30, 2017.

Financial Guidance

ICE's fourth quarter 2017 GAAP operating expenses are expected to be in a range of $540 millionto $550 million and adjusted operating expenses are expected to be in a range of $475 million to $485 million.

ICE's interest expense is expected to be $50 million in the fourth quarter.

ICE's adjusted effective tax rate is expected to be between 30-32% for the fourth quarter.

ICE's diluted share count for the fourth quarter is expected to be in the range of 585 million to 595 million weighted average shares outstanding.