Intercontinental Exchange, Inc. (NYSE:ICE) Just Released Its Third-Quarter Earnings: Here's What Analysts Think
Investors in Intercontinental Exchange, Inc. (NYSE:ICE) had a good week, as its shares rose 3.8% to close at US$169 following the release of its quarterly results. It was a credible result overall, with revenues of US$2.8b and statutory earnings per share of US$1.67 both in line with analyst estimates, showing that Intercontinental Exchange is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Intercontinental Exchange after the latest results.
Taking into account the latest results, the most recent consensus for Intercontinental Exchange from 13 analysts is for revenues of US$11.8b in 2027. If met, it would imply a decent 8.2% increase on its revenue over the past 12 months. Statutory per share are forecast to be US$7.44, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$11.7b and earnings per share (EPS) of US$7.29 in 2027. So the consensus seems to have become somewhat more optimistic on Intercontinental Exchange's earnings potential following these results.
See our latest analysis for Intercontinental Exchange
There's been no major changes to the consensus price target of US$192, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Intercontinental Exchange analyst has a price target of US$243 per share, while the most pessimistic values it at US$167. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Intercontinental Exchange's revenue growth is expected to slow, with the forecast 6.5% annualised growth rate until the end of 2027 being well below the historical 9.6% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.8% annually. Factoring in the forecast slowdown in growth, it looks like Intercontinental Exchange is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Intercontinental Exchange's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$192, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Intercontinental Exchange going out to 2028, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Intercontinental Exchange , and understanding them should be part of your investment process.
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