NYSE-parent ICE’s revenue misses as muted IPO markets offset record energy trading

By Jerry  Published On May 3, 2024
May 2 (Reuters) – Intercontinental Exchange (ICE.N), opens new tab reported first-quarter revenue slightly below estimates on Thursday as an uneven recovery in U.S. initial public offerings cut into the upswing from record trading activity. Revenue from IPOs fell 4% to $122 million in the first quarter. Analysts on average had expected a smaller decline of about 2.33% according to LSEG data.
Overall revenue of $2.29 billion came in a touch below Wall Street expectations of $2.31 billion, while adjusted earnings per share of $1.48 were in-line with estimates.
ICE’s share were down 2% to $126.07 in morning trading, driven by concern about the outlook for its mortgage technology business.
The segment brought in $499 million in the first quarter, but a dramatic change in interest rate expectations has led ICE to believe revenue growth is unlikely to improve and should be flat or down until later this year.
“Their mortgage tech business will likely face more headwinds in the second half of this year,” Owen Lau, senior analyst at Oppenheimer & Co., said.
Source: REUTER

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